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For Leaders Only - May 10, 2011
1. For Leaders Only In Pursuit of Excellence Sessions Engaging People for Better Performance May 10, 2011
2. “If we were meeting here one year from today, looking back over that time, what needs to have happened for you to be satisfied with the performance of your organization?” FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction
3. Leaders are Ready for Growth FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction
4. Leaders are Ready for Growth The Top CEO Challenges for 2011 (Conference Board 2011) FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction
5. Imagine … If all of your workforce was ready, willing, and able – what could your business achieve? FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction
6. The Situation …Moving Mountains The critical driver for performance lies in your ability to put the right people in the right positions and align them to your strategy. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction
7. The Situation …Moving Mountains Most organizations produce results at about 63% of potential performance capacity. (Harvard Business Review) 63% 63% Actual Performance Lost Potential Performance FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction
8. The Situation …Moving Mountains Employees are responsible for 85% of the variation in executing on strategy. It is not the brilliance of strategy that creates competitive advantage – it is the efforts of people. (Success Factors Research 2010) FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction
9. The Focus … Moving Mountains Leaders need to look internally to improve execution and business growth … FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction
10. The Focus … Moving Mountains 1. The Top 4 Strategies to Improve Business Results: (Conference Board 2011) 2. 3. 4. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction
11. To provide tools and insights to improve organizational performance. Part 1 Shifting the Curve for Better Results Part 2 Increasing the ROI of Your Workforce Part 3 Being More than the Sum of the Parts FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction Today’s Focus …
12. The Outcome: No matter what your starting point, you can always drive improvement. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction
13. Part One: New Perspectives Leading for Performance: Shifting the Curve for Better Results
14. “If you can’t explain it simply, you don’t understand it well enough.” Albert Einstein FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
15. If an organization wants to succeed – today and in the future – it must attract and retain great employees. “In the long run, the most profitable companies are those that take care of their people … without people who are happy and productive, the company’s long-term prospects are mediocre at best.” Dr Jack Fitz-Enz FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
16. The impact of good people on the organization cannot be underestimated. 85% of the variance in execution against strategy is explained by people performance. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
17. Without people performance, a great strategy is just an idea – it’s your people who make it real. The greatest potential for increased execution, productivity, and profitability lies in your people. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
18. One solution … Hucamentrics FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
19. Hucametrics The new science of tracking and applying human capital data to predict employee and business performance based on cause and effect. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
20. The Formula … Competence Engagement Organizational Opportunity = Return on Human Capital Or, more simply put … Ready, Willing, and Able. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
21. Turning data into business intelligence… FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
22. Where to start: HCVA: Human Capital Value Added HCROI: Human Capital Return on Investment PROHC: Potential Return on Human Capital FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
23. Handout One: Organizational Hucametrics FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
24. Human capital is the greatest lever for performance today. Hucametrics provide a baseline of where the organization stands today. The next step is to get a firm grip on performance variance to improve the metrics. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
25. Every organization has a distribution curve of their employees’ performance levels – but it’s a question of how well you can see it. Only 3% of organizations measure their performance curve. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
27. Where do you focus? The A Performer: goes beyond expectations and shows self-starting initiative The B Performer: valued, steady, and meets the needs of their role – not dispensable The C Performer: does not meet expectations The D Performer: Lacks contribution and is not engaged in the organization FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
28. The C Performers hold great potential for significant contribution variance. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
29. So many C Performers are simply placed in the wrong position, mismanaged, or under coached. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
30. Handout Two Moving the C Performer FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
31. The linchpin for shifting people performance - leadership. “Better people are not needed for better performance.” *Peter Drucker FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
32. How well managers manage and are managed determines whether business goals will be reached and the level of workforce performance achieved. “Workers’ attitude reflects, above all, the attitude of their management.” *Peter Drucker FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
33. The responsibility of leadership: Improve managers’ competence and confidence in building people performance and being accountable for the results. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
37. Support managers to be responsible for employee performanceFOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
38.
39. Link competencies to performance needsFOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
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41. Improve manager competence and accountability for team performance – coaching skillsFOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
42. Shifting the performance curve is founded in leadership that measures what matters and invests responsibly with accountability. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One
43. Part Two: Innovative Ideas Leading with Engagement Increasing the ROI on your Workforce
44. “"If we did all things we were capable of doing, we would truly astound ourselves." Thomas Edison FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
45. Execution is about focusing resources on the objectives that will reap the biggest reward for your organization. It's more than just having a strategy; it is about translating the strategy into action on a daily basis. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
46. The Shifting Drivers of Business Value "More than 75% of the growth in US market capital in the last 10 years has come from "intangible assets" - assets which are not listed on the balance sheet." Bersin & Associates FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
47. Organizational capability is a shift in mindset to improve execution through people... "The firm's ability to manage people to gain competitive advantage” Dave Ulrich FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
48. How does the organization ensure that it has the talent in place - the capability - to execute on its strategy? FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
49. Developing a "talent mindset" is based on the belief that: talent is a positive differentiator for the organization and individuals that it can be developed, and that it leads to reaching current and future goals. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
50. A Talent Mindset is founded in the belief that people are the primary driver for success. It is proactive rather than reactive. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
51. Organizations need a business process that drives performance at both the organizational and individual level with emphasis on aligning competencies with business goals. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
52. The first step to improving Workforce ROI through organizational capability is focus. Where should attention be placed to make a difference? FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
53. The key to productivity gains for an organization is to manage the performance variance at the pivot points: Strategic drivers Strategic competencies Strategic positions FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
54. Organizational Competencies Organizational competencies are the combination of required skills, necessary information, appropriate performance measures, and the right corporate culture dynamics that is needed to achieve the strategic vision. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
55. Step One What competencies are needed organizationally to deliver against the strategy? Case Study Handout FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
56. Step Two What positions matter most? FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
57. Pivotal Positions These are the pivotal positions. Pivotal positions vary by industry and organization and time. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
58. Pivotal Positions To identify: the organization must look across the enterprise and objectively determine which position(s) have the greatest ability to impact (positively or negatively) key business results. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
59. Case Study Part Two FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
62. Determine the starting point for investing to increase workforce ROIFOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
63. Not every employee is equally important in driving your organizational strategy. Different jobs contribute differently to both top and bottom line, and the performance of individuals differentially contributes even more. Few organizations apply this concept. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
64. Measuring bench-strength is about targetingthe variance in individual / group performance. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
65. The Performance / Potential Matrix FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
66. Development strategy must be based on business strategy and the requirements for effective execution. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
67. Achieving a significant increase in the Workforce ROI for your organization starts and ends with focus. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
68. Define the strategic drivers to focus the organization’s actions and attention Define the organizational competencies to focus the workforce on the actions that create competitive advantage for the organization FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
69. Define the pivotal positions that will have the greatest impact on organizational execution and performance Define the competencies most needed for exceptional performance in the pivotal positions FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
70. Define the benchstrength of the people in the pivotal positions to determine the skill gaps and focus for investment Invest and measure FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
71. This overall approach builds a solid “People Portfolio”. You connect strategy to people for the performance you need to achieve results. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two
72. Part Three: Renewed Energy Leading with Effectiveness Being More than the Sum of the Parts
73.
74. and 42% are judged as poor.*Harvard Business Review FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three
75. The Challenge Few teams function as well as they could but the stakes are higher with senior teams – lack of effectiveness at the top can slow down or derail an organization. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three
76. The Situation A real team is more than the sum of its parts … most top teams are simply work groups where synergy does not create leverage and the group is the sum of its parts. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three
77. The Situation Increasingly, top teams are essential to the success of the organization. The top team has broader and deeper reach than one leader alone and its performance has a multiplier effect. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three
78. Often, however, the leadership team is at best a collection of strong individuals who sometimes work at cross-purposes. Being seasoned executives with excellent individual performance does not naturally translate to an effective team. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three
79. The Situation In most situations, smart people do not make smart teams. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three
80. The Situation The critical question is; Why can’t a group of sophisticated, experienced, and intelligent professionals come together to create a solid, high-performing top team? FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three
81. Answer: There are specific roadblocks and obstacles that prevent senior teams to actually work as effective teams and these issues need to be addressed and resolved. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three
83. How do we bridge the gap between potential and performance? Potential Performance FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three
84. The Solution The Four Dimensions of a Successful Top Team Ensure the top team does just the work only it can do … a clear and compelling definition of the performance opportunities and challenges that require collective effort is essential. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three
85. The Solution The Four Dimensions of a Successful Top Team Address team dynamics and processes… clarify expectations for team collaboration and put in place supportive systems and processes to ensure accountability FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three
86. The Solution The Four Dimensions of a Successful Top Team Master the performance dimensions needed for success… shared understanding of common goals and values, interactive skill development, and build capabilities to respond to change FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three
87. The Solution The Four Dimensions of a Successful Top Team Ensure the right skills are present … capabilities, attitudes, and beliefs needed to meet specific performance opportunities and challenges are more important than title and position FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three
88.
89. Only 38% of executives feel their teams allocate their time appropriately
90. Only 30% of top teams work in productive collaborationMcKinsey and Company 2011 FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three
91. You can not just convene a group of people and call them a team FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three
92. A real team has one essential characteristic – interdependent work. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three
105. Identifying next steps and accountabilitiesFOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three
106. The Next Steps What should the team be focused on? What is the value-add from working as a team? What are the expectations for working together? What are the processes needed? What are the needed dynamics? Where is the team now, what are the gaps, and what needs to happen? FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three
107. The Next Steps Today’s challenges demand not only great personal effort, but also first-class collective leadership. Make the investment to build a truly top team. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three
109. Leaders must always, in every decision and action, put economic performance first. The organization can justify its existence only by the economic results it produces. Paraphrased from Peter Drucker FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Four
110. Leaders must also make work productive and support the worker to achieve. Organizations have only one true resource – people. It performs by supporting workers to be productive. Paraphrased from Peter Drucker FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Four
111. Leaders also have a social responsibility for the organization. None of our organizations exist by itself or are an end in itself. Paraphrased from Peter Drucker FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Four
112. Leaders are ready for growth. To achieve growth effectively, organizations need to shift focus from financial capital and process efficiency to people performance. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Four
113. “We have become an employee society” Peter Drucker FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Four
114. Maximizing employee contribution requires a shift to a “talent mindset”. Proactively connecting strategy and people to provide focus, meaning, and results. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Four
115. Imagine … If all of your workforce was ready, willing, and able – what could your business achieve? FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Four
116. Moving Mountains: The critical driver for performance lies in your ability to put the right people in the right positions and aligning them to your strategy. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Four