What Successful Businessesare Doing

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  • 1. What Successful Businesses are Doing
  • 2. Companies that Prosper in Good Times and Difficult Times -
    1.
    Understand what their customers want and need
    2.
    Do the right things to consistently exceed customers
    expectations
    3.
    Focus on the most important things to achieve
    These expectations
    4.
    Incorporate this into a well defined strategy
    Aberdeen Group August 2007
  • 3. Prosperous Companies Use this Strategy to Guide -
    1.
    How they organize themselves
    2.
    How they staff their organization
    3.
    How they define what their people should do
    4.
    How they invest in their human capital
    Aberdeen Group August 2007
  • 4. The Challenges
    1. Hire top performers
    2. Develop present employees
    Stepping
    Stones or Stumbling Blocks
    3. Managing employee performance
    4. Planning for the future
  • 5. WHAT ARE THEY USING?
    1
    Assessments tools for skill, fit & Attitude
    2
    Competency modeling
    3
    360 Multi-rater Feedback
    Succession planning tools
    4
    5
    Performance planning tools
    They are using -
    Aberdeen Group August 2007
  • 6. 1. Hiring Challenges
    Response
    Challenge
    Challenge
    Response
    49%
    53%
    39%
    52%
    Articulate behaviors and skill sets of top performers, so we can test and find people who match the job best
    Ability to compete for top talent in hiring or retention
    Inconsistent hiring practices across the organization
    Enhance screening to select the best candidates
    Aberdeen Group August 2007
  • 7. 1. Hiring Challenges
    Response
    Challenge
    Challenge
    Response
    35%
    47%
    34%
    44%
    Improve candidate screening to screen out candidates who do fit the position requirements
    New hires are unprepared in knowledge or skills for the positions we fill
    Fail to prepare new hires sufficiently for the new position
    Create a talent pool from which to select candidates
    Aberdeen Group
  • 8. Hire the right people
    W. Edward Deming said,
    “If a person is not performing as expected, it is probably because they have been miscast for the job.”
  • 9. Who is Applying?
    A 36% increase in number of job applicants who are not eligible for rehire due to personality conflicts, disciplinary problems, theft and embezzlement.
    7% of applicants had criminal record.
    25% misrepresented their education and credential records.
    Avert Inc., 800,000 background checks
  • 10. What is the Cause?
    What is the Cause?
    Eighty five percent of all job failures have to do with the lack of appropriate work habits, not technical skills… how the person does the job and what kind of habits they bring is in most cases more important to identify than technical skills.
    Dell Still, High Impact Hiring
  • 11. Insanity in Hiring
    Michigan State University School of Business professors concluded a study recently that showed assessments were the most accurate means of predicting the performance of an individual.
    Assessments were rated four times more accurate than interviews.
  • 12. Hire the Right People
    Jim Collins, Author of Built to Last said- “The right people are your most important asset and you can’t get the right behavior (performance) from the wrong people.”
    50 to 70 percent of most job qualifications may be more inherent in personality than skill.
  • 13. The Payoff is Enormous
    If you accurately assess a person’s soft skills, the payoff is enormous. You’ve not only landed a productive employee but freed the employee’s manager to do constructive, rather than remedial, coaching.
    “The first mistake that anybody in management makes is to assume that through training, incentives, or disciplinary action, you can change people who are not doing the job right. People can change, but in the end, we think, most people won’t.”
  • 14. Hire Smart, Hire Right
    The use of pre-hire testing is a growing part of hiring
    The goal of improving the quality of each new employee is not to just get a better workforce, but to retain it, thus reducing hiring costs by reducing turnover
  • 15. Testing Fears
    Two decades ago, corporations feared using pre-employment assessments could be grounds for lawsuits.
    Afraid they may unintentionally discriminate or have adverse impact on diverse populations.
    Today companies worry more about hiring malfeasance, than about testing malfeasance.
    Only 5 successful suits in the last 60 years of testing.
    SHRM reports that testing is the safest thing you can do.
    Aberdeen Group
  • 16. Why Use Assessments?
    68% of companies of 1000 plus ee’s
    Use assessments
    57% agree that pre-hire assessments are a valuable strategy for employee retention
    Validated
    Assessments
    Work!
    52% agree that tests have alerted them to potential problem hires
    45% Agree testing distinguished poor from good hires
    Aberdeen Group August 2007
  • 17. Who is Testing?
  • 18. Assessment Usage
    Companies with 1000 plus ee’s
    Who is being
    Assessed?
    52%Execs
    40%
    C-Level
    52%
    Hourly
    66%
    Professional
    64%
    Mid-Mgrs
    Text1
    Aberdeen Group August 2007
  • 19. $$ CHANGE IN 2008 EMPLOYEE RECRUITING BUDGET
    An average of 56% of employers increased their budget
    SHRM talent management survey
  • 20. 2. Competency Usage
    Present
    Planned
    35%
    45%
    Plan to use tools to identify competencies
    Use tools to identify competencies
    Aberdeen Group August 2007
  • 21. WHY COMPETENCY MANAGEMENT?
    1.
    5.
    Aligning workforce with business objectives 57%
    Increase retention/reduce turnover 24%
    2.
    Improved workforce productivity 37%
    3.
    Flexible and agile workforce 29%
    4.
    Identify and develop Hi-Po workers earlier 27%
    Aberdeen Group August 2007
  • 22. Current & Planned Competency Use
    Present
    Planned
    Present
    Planned
    55%
    43%
    36%
    52%
    Identify knowledge gaps that can be resolved with learning
    Identify knowledge gaps that can be resolved with learning
    Define common behaviors of top performers
    Define common behaviors of top performers
    Aberdeen Group August 2007
  • 23. Current & Planned Competency Use
    Present
    Planned
    Present
    Planned
    37%
    50%
    33%
    46%
    Leverage workers who display desired competencies
    Leverage workers who display desired competencies
    Create career paths with matching competencies
    Create career paths with matching competencies
    Aberdeen Group August 2007
  • 24. 3. 360 Multi-Rater feedback
    360 Feedback Assessment Surveys or Multi-Rater Surveys refer to…
    • Surveys that are completed by one’s boss, staff, team members,co-workers or customers.
    • 25. Feedback comes from multiple sources.
    • 26. Not a self assessment only process
    • 27. Surveys that provide feedback that indicate how effectively the person is performing specific job-related skills and practices.
  • Value of 360’s
    Help individuals improve
    their performance
    Feedback from 360 surveys can be the single most effective catalyst to individual growth and development when used properly
    Help organizations align the
    day to day performance of their people
    with strategic goals
    As individuals become effective,
    so does the organization
  • 28. 360° Applications
    Self Development
    Leadership Development
    Performance Appraisal/Management
    Coaching and Counseling
    Career Development
    Team Building
    Succession Planning
    Sales Development
  • 29. 360°: Practical Benefits
    Catalyst for Change
    Personal
    Professional
    Consequences of behavior, actions
    Identify barriers to career development
    Increase Influence with Others
    Identify strengths to build upon
    Identify areas for development
    Work more effectively with others
    Continuous improvement
    Personal
    Professional
  • 30. “GAP” Analysis Survey
    Dual
    Scale
    Uses two scales (or questions) to gather data about the person’s current practices (how often am I doing this now) and the expectations or needs of others (how often should I be doing this now)
    Effectiveness is determined by comparing the Current Practices against the Expectations or Needs of others the person works with an to use applicant tracking system in hiring process
    Aberdeen Group August 2007
  • 31. Advantage of Dual Scale
    The feedback results focus the rater’s real and immediate needs
    A
    The message “your people want more (or less) of a practice” is easier for a person to understand, accept and to respond
    B
    C
    Shows what the “Majority “ wants
  • 32. 74%
    Companies who are doing succession planning or plan to do succession planning
    74%
    74%
    74%
    4. TALENT MANAGEMENT/SUCCESSION PLANNING
    Aberdeen Group August 2007
  • 33. Talent Management/Succession Planning Priorities
    24%
    76%
    Top Priority
    Not a Priority
  • 34. EMPLOYEE DEVELOPMENT $$ CHANGE IN BUDGET
    An average of 59% of employers plan to increase their budget
    SHRM talent management survey
  • 35. Why Succession Plan?
    Need to evaluate top talent
    Unexpected loss of
    key leaders
    Problem finding
    successful management
    candidates
    Reduce the cost of
    replacing employees
    Identify Hi-Po candidates- early and have plan for retaining top talent
    Improve company’s bench
    strength in key positions
  • 36. What Are Companies Doing?
    51%
    50%
    34%
    Use leadership development tools
    Position succession planning as a KEY to retention strategy
    Offer executive coaching
    28%
    D
    Offer external leadership development programs
    23%
    Offer mentorship programs
  • 37. Why Are Companies Doing It?
    82%
    80%
    77%
    Create culture that makes an individual want to join
    Create a culture that values an employees’ work
    Align employees with the mission and vision of the organization
    72%
    Create a culture that will make employees want to stay with the organization
    D
    70%
    Place the right people in the right jobs
  • 38. 5. Performance Management
    ensure managers involve employees in the goals definition process
    77%
    Have standardized employee performance ratings across the organization to ensure consistency with reviews
    70%
    Employees understand how their individual performance affects organizational goals
    68%
  • 39. Performance Management
    Is
    What
    Driving
    It?
    54%
    37%
    27%
    27%
    Develop leadership and management pipeline
    Align ee goals and development activities to business priorities
    Create a performance culture
    Increase productivity of current workforce
    Aberdeen Group
  • 40. Performance Management
    Best-in-Class organizations are 55% more likely than all other organizations to have their managers define and communicate individual employee goals and expectations within or before the first week of the employee’s start date.
    Three quarters of Best-in-Class organizations ensure that managers involve ee’s in the goal definition process. They establish common ground pertaining to performance expectations and create a sense of personal ownership of the goals by ee’s.
  • 41. Performance Management
    Best-in Class organizations have established mechanisms to ensure that managers provide ee’s with clear and consistent performance feedback.
    They hold managers accountable for the management of their subordinates’ performance.
    This helps maintain the critical line of communication between ee’s and their managers, builds trust between both parties and provides a mutual sense of ownership and accountability in the process.
  • 42. Achieving Performance Management
    Best-in-Class Organizations
    Reinforce ee performance with supportive resources such as linking pay to performance, providing mentors or coaches and establishing a consistent line of communication between ee’s and their immediate supervisors
    Laggard Organizations
    Tend to focus their efforts on establishing better goal setting processes and suffer from inconsistencies and lack of accountability; which have a direct impact on ee morale, performance and retention
  • 43. Performance Management
    Standardize employee performance ratings
    across the organization
    Involve employees in their development and goal planning
    Improving
    Performance
    Management
    Define the metrics against which your organization will measure employee performance
    Educate employees on how their personal performance affects the organization’s goals
    Aberdeen Group August 2007
  • 44. Thank You !