Towers Watson Manager Redefined Presentation

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Towers Watson Manager Redefined Presentation

  1. 1. Towers Watson. All rights reserved. Manager Redefined: The Competitive Advantage in the Middle of Your Organization By Thomas Davenport and Stephen Harding Published by Jossey-Bass, division of Wiley October 2010
  2. 2. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 2 Manager Redefined: The Competitive Advantage in the Middle of Your Organization  Management and leadership have been with us since humans invented work. For most of the last two decades, however, the manager position has been under direct assault. It’s become a ragged conglomeration of pieces and parts, designed to do too many things and engineered to do none of them well. People both higher and lower in the organizational hierarchy question its value, resent the authority it confers, and criticize the competence of the people who do it.  In Manager Redefined, Tom Davenport and Stephen Harding look at the picture differently. They view supervisors and managers as centers of insight and influence, underappreciated in many organizations, but endowed nevertheless with the potential to make dramatic contributions to enterprise success. The authors challenge readers to consider the power embedded in their managers’ accumulated knowledge and experience. Building and unleashing that power is the authors’ aim in Manager Redefined. Book jacket copy:
  3. 3. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 3 About the Authors Thomas O. Davenport Tom is a senior practitioner in Towers Watson’s Talent Management and Organizational Alignment practice, providing consulting services on human capital strategy, employee and organization research and leadership strategy. In addition to Manager Redefined, Davenport is the author of Human Capital: What It Is and Why People Invest It (Jossey- Bass Division of Wiley,1999). Tom also leads the development of Towers Watson’s methodologies for improving the effectiveness of supervisors and line managers. He earned a B.A., magna cum laude, Phi Beta Kappa, from the University of California, Los Angeles, an M.B.A. from the Haas School of Business at the University of California, Berkeley, as well as a master’s degree in journalism from the University of California, Berkeley. Stephen D. Harding Stephen is a senior practitioner in Towers Watson’s Employee Surveys practice, with more than 20 years of experience managing organizational and employee research projects internationally. An experienced organizational psychologist, having spent the first decade of his postdoctoral career as a lecturer in psychology at several U.K. universities, Harding is also a frequent presenter at conferences on employee engagement, employer branding, organizations coping with change, and organizational values. In addition to Manager Redefined, some of his recent publications include Employee Commitment in Europe: Characteristics, Causes and Consequences, and Contrasting Values in Western Europe (Macmillan). Harding has a Ph.D. from the University of Sussex and a B.A. (Hons) from the University of Swansea. Stephen is also a fluent speaker of French and Italian.
  4. 4. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 4 Manager Redefined: The Competitive Advantage in the Middle of Your Organization By Tom Davenport and Stephen Harding “We view supervisors and managers as a center of power and influence. Unleashing that power is our aim with this book.”  Makes the case for the strategic importance of supervisors and managers  Incorporates research findings from the Towers Watson Global Workforce Study, 2010  Features case studies from Best Buy, Intel, Intuit, SAS and Southwest Airlines  Presents a manager performance model that depicts how managers contribute to sustainable competitive advantage Published by Jossey-Bass, division of Wiley Books available for order at amazon.com and barnesandnoble.com
  5. 5. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 5  Chapter 1 – Do Managers Matter?  Chapter 2 – Why Managers Have a Tough Job  Chapter 3 – A New Model of Manager Performance  Chapter 4 – Constructing the Manager Role  Chapter 5 – Executing Tasks  Chapter 6 – Developing People  Chapter 7 – Delivering the Deal  Chapter 7 – Energizing Change  Chapter 9 – Authenticity and Trust  Chapter 10 – Fitting the Pieces Together Published by Jossey-Bass, division of Wiley Books available for order at amazon.com and barnesandnoble.com Manager Redefined: The Competitive Advantage in the Middle of Your Organization
  6. 6. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 6 Manager Redefined: The Competitive Advantage in the Middle of Your Organization  Praise for Manager Redefined  “Davenport and Harding bring a wealth of data and field experience to an often undervalued but pivotal role, the middle manager. They make a convincing case for the untapped potential that lies within that role.” — Dr. John W. Boudreau, Professor of Management, Marshall School of Business; Research Director, Center for Effective Organizations, USC  “In a world of constant change, this book will help you make sense of what’s important and tackle the challenges of being a manager in impossible times, with experience, wisdom, and research that will redefine your ability to lead. Buy it. Read it. Then do it!” — Chester Elton, New York Times best-selling author of The Carrot Principle  “The authors provide a blueprint for resolving one of the most important and often difficult aspects of management  motivating performance. Combining research on how companies operate with recent findings in psychology, they redefine managers as coaches who build autonomy and self-efficacy among team members while maintaining accountability for company goals.” — Dr. Paul J. Zak, Professor of Economics and Director of the Center for Neuroeconomics Studies, Claremont Graduate University  “This is a must-read for anyone interested in understanding the critical role of talent in organizations. The authors challenge organizations to rethink their perspectives and consider how high-performing managers can become a tangible source of competitive advantage.” — Alan Miller, Chairman and CEO of Universal Health Services
  7. 7. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 7 The recession has taken its toll on companies and employees alike But the effects play out differently… Companies are…  Tightly managing labor costs  Conservative about staffing up (the “jobless recovery”)  Seeking a more flexible and scalable workforce (offshoring, contractors, part- time workers)  Driving for productivity gains Employees are…  Thankful to have a job  Disgruntled from pay decreases, or no/smaller bonus and furloughs  Less apt to have promotion opportunities  Survivors Source: Towers Watson Global Workforce Study, 2010
  8. 8. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 8 …and become two separate themes Company theme: “Contingency” “You have a job here…as long as customer demand stays strong, we can afford to keep you and you perform well.” (And even then…) Employee theme: “Security” “I’m glad to have this job even if it doesn’t meet all my expectations, and I’m going to do everything I can to hold onto it, but I am not happy.” (For now…) Source: Towers Watson Global Workforce Study, 2010
  9. 9. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 9 …with managers caught in the middle Company theme: “Contingency” “You have a job here… as long as customer demand stays strong, we can afford to keep you and you perform well.” (And even then…) Employee theme: “Security” “I’m glad to have this job even if it doesn’t meet all my expectations, and I’m going to do everything I can to hold onto it, but I am not happy.” (For now…)
  10. 10. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 10 Who wants to be a manager?  Do you want to be a manager? Source: “Managers of Tomorrow: Setting a New Standard.” 2009 World of Work Topic Report, Randstad 2009. Study of 2,199 employees and 833 U.S. managers conducted in March and April 2009. % among employees 49%51% Yes No
  11. 11. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 11 Why don’t people want the job?  Among employees who agree or strongly agree that they don’t want to be a manager Source: “Managers of Tomorrow: Setting a New Standard.” 2009 World of Work Topic Report, Randstad 2009. Study of 2,199 employees and 833 U.S. managers conducted in March and April 2009. 82% 74% 63% 63% Increased level of stress Handling disgruntled employees Increased paperwork Having to terminate or lay off employees
  12. 12. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 12 Employees are generally skeptical about the performance of their immediate managers My immediate manager: Percent favorable — global Has enough time to handle the people aspects of the job 46% Provides clear goals for the work of the team 55% Helps remove obstacles to doing my job well 51% Explains how our work supports execution of team goals 54% Provides me with opportunities to develop my skills 50% Helps me with career planning and decisions 39% Makes fair decisions about how my performance links to pay decisions 44% Is a trusted source of information about what is going on in the organization 52% Acts with honesty and fairness 54% Source: Towers Watson Global Workforce Study, 2010
  13. 13. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 13 Effective managers get much higher scores Source: Towers Watson Global Workforce Study, 2010 My immediate manager: Percent who agree with survey item and who also: Agree that manager is effective Disagree that manager is effective Has enough time to handle the people aspects of the job 66% 15% Provides clear goals for the work of the team 78% 18% Helps remove obstacles to doing my job well 74% 12% Explains how our work supports execution of team goals 75% 16% Provides me with opportunities to develop my skills 72% 17% Helps me with career planning and decisions 58% 10% Makes fair decisions about how my performance links to pay decisions 66% 11% Is a trusted source of information about what is going on in the organization 76% 14% Acts with honesty and fairness 80% 13%
  14. 14. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 14 High potentials have more frequent manager contact than others, and rate their managers higher Frequency of contact High potentials Others Global overall Once a day/several times a day 75% 65% 69% About once every few days/once a week 20% 23% 22% About once every two weeks/once a month or less often 5% 11% 9% Overall, my manager is effective 70% 54% 59% Source: Towers Watson Global Workforce Study, 2010
  15. 15. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 15 The paradox: For the employee population overall, more contact with managers makes people feel more comfortable working with… Source: Towers Watson Global Workforce Study, 2010 Percent who agree with survey item and who also: Frequency of contact Agree that manager is effective Disagree that manager is effective Once a day/several times a day 75% 62% About once every few days/once a week 20% 24% About once every two weeks/once a month or less often 5% 14%
  16. 16. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 16 …less manager contact Source: Towers Watson Global Workforce Study, 2010 Percent who agree with survey item and who also: Frequency of contact Agree that manager is effective Disagree that manager is effective Once a day/several times a day 75% 62% About once every few days/once a week 20% 24% About once every two weeks/once a month or less often 5% 14% I feel comfortable managing my work on my own, with little direct oversight 89% 68% For the global employee population overall, having a better manager is related to perceptions of effective autonomy
  17. 17. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 17 Organizations should care about manager performance because managers influence many of the top drivers of attraction, retention and engagement Attraction Drivers* Retention Drivers** Engagement Drivers** Competitive base pay Career development Leadership Challenging work Leadership Image Convenient work location Pay and rewards Career development Career advancement opportunities Empowerment Empowerment Vacation/paid time off Supervision Goals and objectives Organization’s reputation as good employer Stress, balance and workload Customer focus Flexible schedule Performance appraisal Values Learning and development opportunities Benefits Strategy and direction Competitive benefits Image Pay and rewards Organization’s financial health Operating efficiency Quality *Source: Towers Watson Global Workforce Study, 2010 — Global **Source: Towers Watson Normative Database — Global Areas of significant direct and indirect influence by immediate manager
  18. 18. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 18 Examples of performance category factors Performance model category Survey item — my immediate manager: Percentage who agree with the survey item and who also: Agree that immediate manager is effective Disagree that immediate manager is effective Executing Tasks Assigns tasks suited to my skills and abilities 81% 27% Provides clear goals for the work of the team 78% 18% Always knows how well our unit is performing its work activities 78% 22% Source: Towers Watson Global Workforce Study, 2010 Developing People and Delivering the Deal Provides me opportunities to develop my skills 72% 17% Helps me with career planning and decisions 58% 10% Helps me to access learning opportunities outside my organization 57% 12% Provides frequent recognition for a job well done 73% 17% Makes fair decisions about how my performance links to pay decisions 66% 11%Energizing Change Encourages new ideas and new ways of doing things 73% 17% Keeps me informed about changes in my organization that affect my work unit 77% 17% Is good at explaining the reasons for changes that happen in the organization 73% 12% Authenticity and Trust Recognizes his or her own strengths and weaknesses 69% 14% Listens carefully to different points of view before reaching conclusions 76% 15% Acts in ways consistent with his or her words 85% 11% Shows respect for my personal feelings and circumstances 79% 20% Is a trusted source of information about what is going on in the organization 76% 14%
  19. 19. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 19 The current environment calls for an offstage manager who excels in five categories Authenticity and Trust Developing People Executing Tasks Delivering the Deal Energizing Change Source: Manager Redefined: The Competitive Advantage in the Middle of Your Organization, Jossey-Bass, A Wiley Imprint, 2010
  20. 20. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 20 Let’s start with the first requirement: Ensuring effective execution of tasks Authenticity and Trust Developing People Executing Tasks Delivering the Deal Energizing Change Source: Manager Redefined: The Competitive Advantage in the Middle of Your Organization, Jossey-Bass, A Wiley Imprint, 2010
  21. 21. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 21 Burnout Engagement EXECUTING TASKS Job Resources  Autonomy  Feedback  Development  Rewards and recognition Job Challenges  Range of responsibility  Workload  Urgency Hindrance Demands  Resource shortfalls  Role conflict and overload  Politics This means balancing job resources and challenges and reducing hindrance demands Burnout
  22. 22. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 22 What’s different about this way of looking at managers? EXECUTING TASKS In the typical model, a good manager: In our model, a strong manager also:  Uses planning tools effectively  Involves employees in planning  Challenges own assumptions  Assigns work fairly  Involves employees in crafting customized jobs  Treats employees equally well  Understands subtle differences in individuals’ engagement drivers Gets jobs done Configures work to build engagement
  23. 23. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 23 The second area, developing people, is a key global engagement driver Authenticity and Trust Developing PeopleExecuting Tasks Delivering the Deal Energizing Change Source: Manager Redefined: The Competitive Advantage in the Middle of Your Organization, Jossey-Bass, A Wiley Imprint, 2010
  24. 24. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 24 Strong managers do more than set SMART* goals FAMIC goal setting: FITEMA feedback: Few in number and focused Fairly determined Aligned individually and organizationally Individual, not comparative Mastery-building Task-focused, not person-focused Incremental Error-tolerant Controllable Matched with the cadence of work Action-oriented DEVELOPING PEOPLE *Specific, measurable, agreed-upon (or attainable), realistic and time-bound
  25. 25. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 25 What’s different about our way of looking at managers? DEVELOPING PEOPLE In the typical model, a good manager: In our model, a strong manager also:  Connects people with training  Creates network of internal/external learning contacts  Coaches employees  Coaches, teaches, counsels to reinforce autonomy and self-efficacy  Sets SMART goals  Works with employees to define FAMIC goals  Gives frequent feedback  Makes FITEMA feedback/dialogue a constant part of the job flow Helps people develop Turbocharges engagement by creating and recognizing mastery
  26. 26. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 26 Delivering the deal requires a partnership between managers and HR Authenticity and Trust Developing People Executing Tasks Delivering the Deal Energizing Change Source: Manager Redefined: The Competitive Advantage in the Middle of Your Organization, Jossey-Bass, A Wiley Imprint, 2010
  27. 27. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 27 How two individualized deals might work Elements Star Contributor Future Executive Work design • Stimulating projects to work on • Membership on teams with smart people • Challenges reflecting technical issues and questions • Growing responsibility for team or project leadership • Challenges reflecting both team and relationships and project operations Growth • Career-development plan focused on achievement of high-technical- contributor status • Contact with network of senior experts in the discipline • Career development plan focused on achieving executive rank • Leadership responsibility for increasingly larger and more important projects over time Recognition • Technical contributions acknowledged • Project success acknowledged, leadership potential reinforced Rewards • Goals and incentives emphasizing commercializable contributions • Goals and incentives emphasizing project success Benefits • Flexible schedule/work location • Cubicle (eventually office) with a window DELIVERING THE DEAL
  28. 28. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 28 What’s different about our way of looking at managers? DELIVERING THE DEAL In the typical model, a good manager: In our model, a strong manager also:  Applies reward systems equitably  Designs customized deals  Adheres to the organization’s pay-for- performance philosophy  Administers systems effectively Knows that:  Pay doesn’t always reinforce performance  Ownership behavior does not follow financial ownership  Deals with poor performers quickly and fairly  Using FAMIC goal setting and FITEMA feedback  Enables poor performers to improve or find better options Implements HR’s pay schemes consistently and efficiently Goes beyond HR programs — creates an intrinsically rewarding portfolio of elements
  29. 29. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 29 Change never stops — Managers must consistently build change capability Authenticity and Trust Developing People Executing Tasks Delivering the Deal Energizing Change Source: Manager Redefined: The Competitive Advantage in the Middle of Your Organization, Jossey-Bass, A Wiley Imprint, 2010
  30. 30. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 30 What’s different about our way of looking at managers? ENERGIZING CHANGE In the typical model, a good manager: In our model, a strong manager also:  Encourages and supports innovation  Builds employee adaptability  Helps people accept and respond to (difficult) change  Builds employee resilience  Provides performance support  Ensures employee well-being Manages change Makes change a contributor to employee strength and organizational success
  31. 31. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 31 Authenticity and trust form the foundation of the manager performance model Authenticity and Trust Developing People Executing Tasks Delivering the Deal Energizing Change Source: Manager Redefined: The Competitive Advantage in the Middle of Your Organization, Jossey-Bass, A Wiley Imprint, 2010
  32. 32. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 32 What’s different about our way of looking at managers? AUTHENTICITY AND TRUST In the typical model, a good manager: In our model, a strong manager also:  Acts with integrity  Develops and conveys a personal style based on authenticity  Demonstrates company values  Understands and achieves the economic advantages of trust  Tests decisions against the three Ms: manager, media, mother Is honest and consistent In every part of the performance model, demonstrates authenticity and builds trust
  33. 33. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 33 Redefine the manager role to unleash greater potential In our model, the best managers work offstage Organizations often:  Define manager competencies by using existing or historic models and emphasizing process, not people  Construct manager roles to fail, by:  Ignoring the implications of reporting spans  Making managers divide their time among too many activities  Promoting for the wrong reasons  Place too much faith in training and development to create competency or rehabilitate poor performers With our help, they will:  Use our four-part performance model to define what managers need to do well  Define the manager role to  Increase employee engagement  Achieve specific economic goals  Contribute to achieving and sustaining competitive advantage  Have a more realistic sense of success requirements and come to better make/buy decisions
  34. 34. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 34 The seven elements of the manager role system Measure Manager Performance Redefine Manager Role Make Change Happen Align Rewards Define Critical Competencies Develop Manager Capability Diagnose Manager Performance Measure Manager Performance Redefine Manager Role Make Change Happen Align Rewards Define Critical Competencies Develop Manager Capability Diagnose Manager Performance Only by addressing each element in the system can an organization build a manager role that contributes to competitive advantage
  35. 35. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 35 Examples of research and case studies  International beverage company  Frontline supervisors directly influence eight of the top 10 factors underpinning employee motivation  Too much time on administrative work  Not enough time coaching and developing their teams — current supervisor model resembles the Widget Wizard  Intervention  Restructure the supervisor role  International IT company  The organization has a complex matrix structure  They want to introduce a multidirectional lattice/ladder career model  Supervisors and managers must be more sophisticated to handle these arrangements  Intervention  Define the manager of the future
  36. 36. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 36  International bank  Employee engagement has focused on macro indicators (BU leadership, competitive position, corporate responsibility). Moving to formalize frontline managers’ assessment  Focus on performance support, providing managers with reports indicating issues that are obstacles to team performance  Intervention  Aggregate scorecard information to give performance metrics for the manager population across the whole retail bank Examples of research and case studies
  37. 37. © 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 37 For media inquiries and questions, please contact: corrinne.macias@towerswatson.com or laura.ryan@ketchum.com

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