Getting The Best Out Of Your People - webinar

GETTING THE BEST OUT OF YOUR PEOPLE

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

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)

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

Productivity

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.

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.

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:

CREATING A PLATFORM TO INCREASE PERFORMANCE AND PRODUCTIVITY

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.

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.

KEY FACTORS TO PRODUCTIVITY

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

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

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

PERFORMANCE AND TALENT MANAGEMENT

Performance and Talent Management Facts

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.

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.

Performance Management System An Integrated System

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.

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.

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

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

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

WHAT EMPLOYEES WANT AND NEED TO DO THEIR BEST WORK

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

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

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

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.

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.

SETTING THE PATH AND ESTABLISHING METRICS

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.

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.

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.

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.

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.)

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

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.

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.

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?

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)

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

Getting The Best Out Of Your People - webinar

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