In today's business environment business owners must understand what motivates their employees so that they can reduce turnover and absenteeism, boost individual performance and create customer loyalty to ensure the long term success of the company. Jose Laurel takes an in-depth look at strategies that will help you align and manage goals, document performance and develop a plan for the Performance Management Process.

1. GETTING THE BEST OUT
OF YOUR PEOPLE

2. Jose Laurel
Director of Client Advisory Services
• + 16 years in management,
operations, marketing and international
commerce
• Designing, implementing and measuring
growth strategies
• Areas of expertise include strategic planning,
marketing/sales strategies, succession
planning and people development

3. From Performance Management to Increased
Productivity
• Understanding and accepting that there is a process to improving
productivity (knowing that it takes planning, measuring and
execution )
• The systems, and best practices that help (there must be a
willingness to change and invest)
• Learning more about your organization, its people and what makes
them special (take time to know where you are and where you want
to go)
• Building a sustainable culture that complements your corporate
mission (people must believe before they can perform)
• Keeping the competitive edge in difficult economic times (creating a
favorite place to work)

4. Table of Contents
• DEFINING PRODUCTIVITY
• CREATING A PLATFORM TO INCREASE
PRODUCTIVITY AND PERFROMANCE
• FACTORS TO PRODUCTIVITY
• ELEMENTS TO PERFORMANCE MANAGMENT
• WHAT EMPLOYEES REALLY WANT AND NEED TO
DO THEIR BEST WORK
• SETTING THE PATH AND ESTABLISHING METRICS

5. Productivity

6. Productivity Defined
• Productivity- is the amount of product created by one
unit of a given factor of production over a stated
period of time.
• Productivity- expresses the marginal relationship of
inputs to outputs and measures the economic
efficiency of production.

7. Productivity Redefined
You’re being productive when your work is entirely satisfying , fulfilling
and adds value to others . And……..
You grow as a person.
You enjoy the company of customers and co workers.
You are proud of what you’ve completed at the end of the day.
You feel confident about your abilities.
You look forward to undertaking the same or similar projects
tomorrow.
You help others.
You receive the acclaim of your peers.

8. Productivity and Performance Survey
• Only 1 in 5 firms measure their return on investment of dollars
spent on marketing, sales and training.
• Less than 12% regularly monitor nonfinancial indicators, such as
customer retention or employee turnover to further evaluate
business performance.
• More than 80 percent of small businesses outsource some
component of their business—from IT to payroll, human resourses
and accounting—to save time, reduce costs, improve performance
and productivity.
• 50% of the firms do not use budgets or forecasts to help manage
their business
• Less than 20% utilize metrics to measure employee productivity
and gauge process improvement
Results of a survey conducted of Small and Medium Businesses regarding management and
employee productivity. The companies surveyed were firms with less than $50M annual revenues or
250 employees:

9. CREATING A PLATFORM TO
INCREASE PERFORMANCE
AND PRODUCTIVITY

10. Are You Getting the Most Out of Your Company
Questions to Ask Yourself:
• Have you established clarity of goals and aligned your workforce to
execute the strategy — When change is forced upon your business you
cannot afford to lose focus or to delay the necessary course shift.
• If you reduced workforce did you cut with precision, — If layoffs become
necessary, view them as your chance to weed out the low performers
and let your best talent grow. Optimize the workforce!
• Are you focusing on your core talent and investing where it counts —
Identify the talent that will be essential for your new strategic direction
and invest heavily when others are cutting. Turmoil is when leaders
emerge.

11. Are You Getting the Most Out of Your Company
Questions to ask Yourself:
• Are you being transparent — Avoid the rumor mills. During uncertain
times, transparency drives trust and employee engagement. Companies
with high trust financially outperform those with low trust by three to one.
• Have you structured your compensation dollars more strategically: pay
for performance — Optimize your spend: avoid the mistake of spreading
limited bonus resources evenly across top- and low-performers.
• Have you identified your company’s key performance indicators so you
know if the business is operating at optimum levels.

12. KEY FACTORS TO PRODUCTIVITY

13. Factors to Productivity
• WORKFORCE PRODUCTIVITY FACTOR #1:
MOTIVATION
• Open communication between employees and management motivates
and makes people feel part of the process and serves to get buy-in
• Workforce must be open to change and have a clear understanding
why the change is positive and good for all concerned
• Working in teams brings employees closer together and builds
cooperation
• Timely performance feedback when things are good or challenging
• Lack of incentives
• Workforce training/ongoing development
• An effective selection/person-job fit

14. Factors to Productivity
• WORKFORCE PRODUCTIVITY FACTOR #2:
EFFICIENCY
• Effective production technology and equipment
• Well designed operational planning
• Effective supervision/management
• Elimination of persistent operating/quality problems
• Increased understanding and knowledge of the customer
• Clear performance standards

15. Factors to Productivity
• WORKFORCE PRODUCTIVITY FACTOR #3:
UTILITY
• Work that has utility or value to the customer
• Measure of the relative satisfaction to all involved
• Impact of one’s work on overall team performance
• Proven process and continuous improvement

16. PERFORMANCE AND TALENT
MANAGEMENT

17. Performance and Talent Management Facts

18. Defining Performance Management
• Performance management solutions enable the
measurement and alignment of individual and team
goals to corporate goals.
• In addition, these strategic applications support
career development, succession planning, and
ultimately rewarding employees through pay-for-
performance.

19. Performance Management System
A Simple Process
Employee performance management includes:
• planning work and setting expectations,
• continually monitoring performance,
• developing the capacity to perform,
• periodically rating performance in a summary fashion
• rewarding good performance.

20. Performance Management System
An Integrated System

21. Drivers of Performance Management
Automate Process to Drive Productivity.
• Performance review processes are dreaded by managers and
HR, are rarely compliant, and are typically performed annually in
conjunction with salary reviews, make them consistent and
timely
• Automating this business process helps alleviate these
problems, but the strategic impact allows managers to focus on
actually improving employee and company performance rather
than just focusing on the tactical aspects of the process.

22. Drivers of Performance Management
Goal Alignment and Execution
• Ensures that people are working on the right tasks. Organizations benefit by having
employees focused on and accomplishing appropriate tasks aligned to corporate objectives.
• This is not possible without an objectively aligned workforce and falls flat without an
accompanying compensation component.
Talent Development and Planning
• Increases retention by providing opportunities. Employees are interested in opportunities to
improve their job skills and advance along a career path into progressively higher-paying
positions.
• Tools to measure competencies and define career paths are useful in helping employees
develop their long-term goals and learn strategies. If such career development opportunities
are not provided, employees will resort to looking outside of the organization.

23. Drivers of Performance Management
Compensation programs – Pay for Performance
• Provide consistency and enforce compliance. A standalone compensation product enforces
policy compliance, audits transactions, and manages the tactical aspects of administering
pay.
• When combined with performance management, organizations are able to reward
employees consistently based on their contributions to the success of the business.
Succession Planning
• Protects critical (and noncritical) positions. Most firms are sunk, spinning, or severely
disabled by sudden executive departures. But these visible departures are only the tip of the
iceberg.
• A corporate wide and deep succession strategy that incorporates competencies, skills, and
career development plans will mitigate flight risks at all levels of the organization

24. Performance Management
Performance Management System:
• Align organizational goals with staff goals
• Design a continuous feedback system between employees and
managers to help further employee development
• Complete employees' performance appraisals in a timely and
secure manner while ensuring uniform compliance
• Automate and fully document the appraisal process
• Identify, address and track development needs in a timely
manner
• HR and management should have control over the process with
tracking, oversight and reporting

25. Performance Management
Managing the Goals and Expectations:
• Set effective ground rules
• Effectively manage the tracking and follow up
• Summarize discussion, emphasize the positive and review
overall expectations
• Build on strengths, not weaknesses
• Ensure that employee understands the goals, expectations and
targeted standards
• Shoot straight, be direct and honest
• Performance management is ongoing. Don't consider this a time
experiment

26. WHAT EMPLOYEES WANT AND
NEED TO DO THEIR BEST WORK

27. What Employees Want and Need to do Their Best
The right tools and technology
• Progressive organizations work diligently to maintain their
technical competitive advantage.
• Without up-to-date technology, long-term success and survival
in any business sector is questionable.
• High-performing organizations realize that technology alone will
not allow them to sustain a competitive advantage. A
commitment from the management team must exist to train and
develop the workforce

28. What Employees Want and Need to do Their Best
Employees want and need to be set up to perform
• Organizations can enhance the workforce ability to
improve performance by using effective selection and
orientation procedures
• Designing training tracks, that attempt to align
workers with their responsibilities.
• A focused effort to enhance the talents of a changing
workforce by utilizing rapidly advancing technologies

29. What Employees Want and Need to do Their Best
Employees want and need motivation
• Create a customer satisfaction mind set among the workers,
provide operational data to workers to create trust and
ownership,
• Empower workers to allow greater autonomy and control, design
jobs that are more stimulating; provided specific performance
metrics and target
• Maintained ongoing measurement and feedback systems to
shape workforce behavior

30. What Employees Want and Need to do Their Best
Employees want and need to participate in the process
• Progressive organizations create ongoing problem-solving
teams; provide effective supervision and constant feedback
mechanisms
• Teamwork is encouraged when decisions are made that impact
multiple departments. When employees are not involved in the
process it breeds frustration and alienation
• In essence, full support from rank and file is crucial to the
success of even the smallest decision.

31. What Employees Want and Need to do Their Best
Employees want and need management to stay focused
• Workforce productivity practices take time, focus, and discipline
to implement.
• The final point of what employees want and need is really a
double-edged sword. Although the productivity practices
described here will increase the performance of your
organization, they are not quick fixes
• And they require management discipline and focus to achieve
maximum and sustained results.

32. SETTING THE PATH AND
ESTABLISHING METRICS

33. SETTING THE PATH AND ESTABLISHING METRICS
• A well planned and designed system can ensure that your
organization's performance & talent management program is
built around world-class best practices,
• Management and employee participation operates more
efficiently, and brings greater consistency to the
entire review process which impacts performance.
• By abandoning ineffective processes, your company can
establish tighter links between employee and organizational
goals and produce stronger performance evaluations
• This will integrate more closely with compensation, employment
planning, retention, and improved productivity.

34. Planning for Performance Management
• Define the purpose of the job, job duties, and
responsibilities.
• Define performance goals with measurable outcomes.
• Define the priority of each job responsibility and goal.
• Define performance standards for key components of the
job.

35. Planning for Performance Management
• Hold interim discussions and provide feedback about employee performance,
summarized and discussed, at least, quarterly. (Provide positive and constructive
feedback.)
• Maintain a record of performance through critical incident reports. (Jot notes about
contributions or problems throughout the quarter, )
• Provide the opportunity for broader feedback. Use a 360 performance feedback system
degree that incorporates feedback from the employee's peers, customers, and people
who may report to him.
• Develop and administer a coaching and improvement plan if the employee is not
meeting expectation
• Schedule the performance development planning (PDP) meeting and define pre-work
to develop the performance development plan.
• Both supervisor and senior manager examine how the employee is performing against
all criteria, and think about areas for potential development.

37. Metrics -Measure the right things
A metric is nothing more than a standard measure to assess your performance in a
particular area:
• Metrics are at the heart of a good, customer-focused performance management system
• It is essential at directing a continuous improvement.
• It places the focus on customers and performance standards
• The metrics assess your ability to meet your customers' needs and business objectives.

38. Measure the right things
Address multiple aspects of your business. Your measurement system should
cover the following areas at a minimum:
CUSTOMERS
1. Performance against customer requirements
2. Customer Satisfaction
PERFORMANCE OF INTERNAL WORK PROCESSES
1. Cycle times
2. Product and service quality
3. Cost performance (could be productivity measures, inventory, etc.)

39. Measure the right things
Address multiple aspects of your business. Your measurement system should
cover the following areas at a minimum:
SUPPLIERS
1. Performance of suppliers against your requirements
FINANCIAL
1. Profitability (could be at the company, product line, or individual level)
2. Market share growth and other standard financial measures
EMPLOYEE
1. Associate satisfaction

40. Measure the right things
Create metrics that work
Developing effective metrics may appear easy at first glance, but many have fallen
into common traps that you can avoid. Examples of common pitfalls are:
1. Developing metrics for which you cannot collect accurate or complete data.
2. Developing metrics that measure the right thing, but cause people to act in a
way contrary to the best interest of the business to simply "make their
numbers."
3. Developing so many metrics that you create excessive overhead and red tape.
4. Developing metrics that are complex and difficult to explain to others.

41. Follow a proven process for developing metrics
• Identify your customers and outputs of your process. Customers may include
end-users of products and/or services, process managers of downstream
processes, and process users. Process Block Diagrams or Flowcharts may
help at this point.
• Determine your customer needs/requirements. Useful techniques include
reviewing outputs with customers to gain their buy-in, establishing their needs
and requirements, and asking them how to measure how well you are meeting
their needs.
• You may want to use Interviews or Surveys. Use the same process with your
suppliers as a way to measure the quality of their input to you and as a way to
establish clear partnerships.
• Ensure you understand the key goals of the business.

42. Follow a proven process for developing metrics
When you have completed determining what you want to measure,
you should step back for a sanity check. Ask yourself:
• Do the metrics make sense?
• How do they compare with your existing metrics?
• Do they form a complete set (e.g., have you adequately covered the
areas of time, quality, cost, and customer satisfaction)? and
• Do they reinforce the desired behavior? For the long haul -- as well
as for today?

43. From Performance Management to
Increased Productivity
• Understanding and accepting that there is a process to improving
productivity (knowing that it takes planning, measuring and
execution )
• The systems, and best practices that help (there must be a
willingness to change and invest)
• Learning more about your organization, its people and what makes
them special (take time to know where you are and where you want
to go)
• Building a sustainable culture that complements your corporate
mission (people must believe before they can perform)
• Keeping the competitive edge in difficult economic times (creating a
favorite place to work)

44. Question & Answer
For More Information:
Jose Laurel
G&A Partners
4801 Woodway, Suite 210
Houston, Texas 77056
(713) 235-8280
www.gnapartners.com
jlaurel@gnapartners.com