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Towers Watson Manager Redefined: Unleash the potential of your organization’s managers
 

Towers Watson Manager Redefined: Unleash the potential of your organization’s managers

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Tom Davenport and Stephen Harding, co-authors of Manager Redefined: The Competitive Advantage in the Middle of Your Organization, share research on managers’ engagement levels and describe some of ...

Tom Davenport and Stephen Harding, co-authors of Manager Redefined: The Competitive Advantage in the Middle of Your Organization, share research on managers’ engagement levels and describe some of the leading stressors affecting manager performance. Highlighting the key tenets of a new model of manager performance, they share in detail how first-line managers can help organizations achieve and sustain a competitive edge.

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    Towers Watson Manager Redefined: Unleash the potential of your organization’s managers Towers Watson Manager Redefined: Unleash the potential of your organization’s managers Presentation Transcript

    • Manager Redefined Unleash the potential of your organization’s managersTom DavenportStephen HardingFebruary 24, 2011© 2011 Towers Watson. All rights reserved.
    • Today’s discussion “Kill” the manager? Redefining the manager The manager performance model Seven elements of success Q&Atowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 2
    • “First, kill all the managers” Employees are smart and demanding We have ambivalent feelings about leadership and followership We really don’t like being told what to do Managers behave badly Middle management has become a euphemism for meddling, ineffectual supervision and frustrating career comatowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 3
    • Who wants to be a manager? Do you want to be a manager? % of employees Yes 51% 49% NoSource: “Managers of Tomorrow: Setting a New Standard.” 2009 World of Work Topic Report, Randstad 2009. Study of 2,199 employees and833 U.S. managers conducted in March and April 2009.towerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 4
    • Why don’t people want the job? Of those employees who don’t want to be a manager Strongly agree/agree 82% 74% 63% 63% Increased level of Handling Increased Having to terminate stress disgruntled paperwork or lay off employees employeesSource: “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.towerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 5
    • Organizations have placed fairly low priority onimproving manager performance Change in emphasis High-performing companies Stayed Talent management activities Increased the same Decreased 1 Senior leadership development 57% 40% 3% 2 Employee learning and development 56% 41% 4% 3 Performance management 54% 46% 0% 4 Senior leadership assessment 52% 45% 3% 5 Succession management 51% 47% 2% 8 Manager performance 43% 56% 1%Source: Towers Watson, Talent Management and Rewards studytowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 6
    • Many companies have allowed the manager’s job tobecome a death spiral You’re our best producer, so we’re promoting you to manager And don’t forget to master manager self-service so you can reduce HR’s burden Overstressed managers, But unfortunately, we frustrated But keep producing — no longer offer training employees, after all, you’re the best for new managers higher turnover, lower productivity True, you haven’t shown And we’re expanding any leadership ability your span of control, to save moneytowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 7
    • Effective managers get much higher scores thanineffective ones Percent who agree with survey item and who also: Agree that Disagree that manager is manager is My immediate manager: effective effective Acts with honesty and fairness 80% 13% Provides clear goals for the work of the team 78% 18% Is a trusted source of information about what is going on in the organization 76% 14% Explains how our work supports execution of team goals 75% 16% Helps remove obstacles to doing my job well 74% 12% Provides me with opportunities to develop my skills 72% 17% Has enough time to handle the people aspects of the job 66% 15% Makes fair decisions about how my performance links to pay decisions 66% 11% Helps me with career planning and decisions 58% 10%Source: 2010 Towers Watson Global Workforce studytowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 8
    • Don’t kill them — redefine them Organizations often: With this approach, they will:  Define manager competencies by  Use our five-part performance model to using existing or historic models and define what managers need to do well emphasizing process, not peopletowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 9
    • Don’t kill them — redefine them Organizations often: With this approach, they will:  Define manager competencies by  Use our five-part performance model to using existing or historic models and define what managers need to do well emphasizing process, not people  Construct manager roles to fail, by:  Define the manager role to:  Ignoring the implications of  Increase employee engagement reporting spans  Achieve specific economic goals  Making managers divide their time  Contribute to achieving and among too many activities sustaining competitive advantage  Promoting for the wrong reasonstowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 10
    • Don’t kill them — redefine them Organizations often: With this approach, they will:  Define manager competencies by  Use our five-part performance model to using existing or historic models and define what managers need to do well emphasizing process, not people  Construct manager roles to fail, by:  Define the manager role to:  Ignoring the implications of  Increase employee engagement reporting spans  Achieve specific economic goals  Making managers divide their time  Contribute to achieving and among too many activities sustaining competitive advantage  Promoting for the wrong reasons  Place too much faith in training and  Have a more realistic sense of success development to create competency or requirements and come to better rehabilitate poor performers make/buy decisions In our model, the best managers work offstagetowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 11
    • In this context, a key theme “To lead people, walk behind them.” Lao-Tzutowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 12
    • The current environment calls for an offstage managerwho excels in five categories Executing Developing Delivering Energizing Tasks People the Deal Change Authenticity and Trusttowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 13
    • Let’s start with the first requirement: ensuring effectiveexecution of tasks Executing Developing Delivering Energizing Tasks People the Deal Change Authenticity and Trusttowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 14
    • EXECUTING TASKSThis means balancing job resources and challenges, andreducing hindrance demands Job resources: Job challenges:  Autonomy  Range of  Feedback responsibility  Development  Workload  Rewards and  Urgency recognition Engagement Hindrance demands  Resource shortfalls  Role conflict and overload  Politics  Unclear leadership Burnouttowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 15
    • EXECUTING TASKSDefining alternative manager roles: technical expert 0% 20% 40% Time allocation  Direct production  People focus  Work process oversight  External contact  Administration Manager competency Technical Relational balance Employee roles and Limited Broad competencies 0 10 Span of controltowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 16
    • EXECUTING TASKSDefining alternative manager roles: power multiplier 0% 20% 40% Time allocation  Direct production  People focus  Work process oversight  External contact  Administration Manager competency Technical Relational balance Employee roles and Limited Broad competencies 0 10 Span of controltowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 17
    • EXECUTING TASKSWhat’s different about this way of looking at managers? 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 engagementtowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 18
    • The second area, developing people, is a key globalengagement driver Executing Developing Delivering Energizing Tasks People the Deal Change Authenticity and Trusttowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 19
    • DEVELOPING PEOPLEWhy performance management systems fall short —look to the manager Performance management challenges % of respondents Managers unwilling to take the time 27 55 18 27 55 18 to thoroughly evaluate employees Lack of funds to reward high performers 27 36 38 27 36 38 Inadequate manager training on how 25 56 19 25 56 19 to be an effective coach Insufficient rewards for managers in 20 49 31 20 49 31 managing performanceEmployee mistrust of performance ratings 20 52 28 20 52 28 Significant challenge Some challenge Not a challengeSource: Reward Challenges and Changes — Top-Line Results, Towers Perrin, 2007, p. 41.towerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 20
    • DEVELOPING PEOPLEStrong managers do more than set SMART* goals FAMIC goal setting: FITEMA feedback:Few in number and focused Fairly determinedAligned individually and Individual, not comparativeorganizationallyMastery-building Task-focused, not person-focusedIncremental Error-tolerantControllable Matched with the cadence of work Action-oriented *Specific, Measurable, Agreed-upon (or Attainable), Realistic and Time-boundtowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 21
    • DEVELOPING PEOPLEWhat’s different about this way of looking at managers? 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 Turbo-charges engagement by creating Helps people develop and recognizing masterytowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 22
    • Delivering the deal requires a partnership betweenmanagers and HR Executing Developing Delivering Energizing Tasks People the Deal Change Authenticity and Trusttowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 23
    • DELIVERING THE DEALWhich picture doesn’t fit?towerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 24
    • DELIVERING THE DEALPeople are not assets — they are investorstowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 25
    • DELIVERING THE DEALHow two personalized deals might work Elements Star contributor Future executive Work design • Stimulating projects to work on • Growing responsibility for team or project • Membership on teams with smart leadership people • Challenges reflecting both team and • Challenges reflecting technical issues relationships, and project operations and questions Growth • Career-development plan focused on • Career-development plan focused on achievement of high status as a achieving executive rank technical contributor • Leadership responsibility for increasingly • Contact with network of senior experts larger and more important projects over in the discipline time Recognition • Technical contributions acknowledged • Project success acknowledged, leadership potential reinforced Rewards • Goals and incentives emphasizing • Goals and incentives emphasizing marketable contributions project success Benefits • Flexible schedule/work location • Cubicle (eventually office) with a windowtowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 26
    • DELIVERING THE DEALWhat’s different about this way of looking at managers? In the typical model, a good manager: In our model, a strong manager also:• Applies reward systems equitably • Designs customized deals Knows that:• Adheres to the organization’s • Pay doesn’t always reinforce performance pay-for-performance philosophy• Administers systems effectively • Ownership behavior does not follow financial ownership • Uses FAMIC goal setting and FITEMA• Deals with poor performers quickly and feedback fairly • Enables poor performers to improve or find better options Goes beyond HR programs — creates an Implements HR’s pay schemes intrinsically rewarding portfolio of consistently and efficiently elementstowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 27
    • Change never stops — managers must consistently buildchange capability Executing Developing Delivering Energizing Tasks People the Deal Change Authenticity and Trusttowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 28
    • ENERGIZING CHANGEFaced with culture change, managers need to focus onsustaining engagement Engagement Highest employee Employees’ performance “attachment” to the organization (think, feel, act) Well-being Individual physical, Performance support social and emotional Facilitation of health at work employees’ efforts in the immediate work unittowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 29
    • ENERGIZING CHANGEPerformance support in practice Nearly one in three think there are substantial obstacles to doing their job well, and that conditions in their job are not conducive to achieving exceptional performance Feelings of frustration are widespread in the workplace My team/local work group is able to meet our 63% 22% 16% work challenges effectively There are no substantial obstacles at work to 46% 22% 32% doing my job well Conditions in my job help me achieve 38% 32% 31% exceptional performance Over the past month, I have often experienced 60% 21% 19% feelings of frustration at work Agree Don’t know DisagreeSource: Towers Watson 2010 Global Workforce studytowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 30
    • ENERGIZING CHANGE What’s different about this way of looking at managers? 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 Builds employee resilience (difficult) change Provides performance support Ensures employee well-being Makes change a contributor to employee Manages change strength and organizational successtowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 31
    • Authenticity and trust form the foundation of themanager performance model Executing Developing Delivering Energizing Tasks People the Deal Change Authenticity and Trusttowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 32
    • AUTHENTICITY AND TRUST What’s different about this way of looking at managers? In the typical model, a good manager: In our model, a strong manager also: Develops and conveys a personal style Acts with integrity based on authenticity Follows the platinum rule: Treat others the Demonstrates company values way they want to be treated Don’t take yourself too seriously Understands and achieves the economic advantages associated with trust Consistently adheres to principles of fairness Sees every part of the performance model as an opportunity (indeed, a requirement) Is honest and consistent to demonstrate authenticity and build trusttowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 33
    • Incorporating the model into practice The Seven Elements of Success Diagnose Manager Performance Make Redefine Change Manager Happen Role Develop Define Manager Critical Capability Competencies Align Measure Rewards Manager Performancetowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 34
    • A final thought“As for the best leaders,the people do not notice theirexistence. The next best,the people honor and praise.The next, the people fear,and the next, the peoplehate. When the best leader’swork is done, the people say,‘We did it ourselves.’”Lao-Tzu Make this the guiding theme for the managers in your organizationstowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 35
    • Contacts Tom Davenport tom.davenport@towerswatson.com Stephen Harding stephen.harding@towerswatson.comtowerswatson.com © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 36