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The Invisible Employee:
Your Best Asset
I. Introduction: Ready. Shoot. Aim.
                                Some companies aren’t just cutting, they’re hacking. They’re cutting deep
                                and fast. But are they cutting smart?

                                                                                           A recent article in HR Executive magazine assessed the
                                                                                           dangers that exist when companies cut with little insight
                                                                                           during the current downturn. “All too often downsizings follow
                                                                                           a similar pattern: Executives decide that the workforce must
                                                                                           be cut by 5 percent to save money, the cuts are apportioned
                                                                                           across the workforce, and then the HR executive is asked to
                                                                                           oversee the reductions and ensure the process doesn’t violate
                                                                                           any laws or regulations.” That’s the unfortunate reality for
                                                                                           many businesses. But even as these economic dark clouds
PERFORMANCE >>




                                                                                           gather, the article did offer a glimmer of sunshine. “Companies
                                                                                           that have a rigorous performance-appraisal system in place
                                                                                           will be the most prepared to ride out the economic storm.”1

                                                                                           OK, but how does “a rigorous performance appraisal
                                                                                           process” work? Ideally, managers need to be able to put their
                 POTENTIAL >>
                                                                                           employees on a grid of performance vs. potential (like the one
                                                                                           at the left) so they can see clearly who they need to keep and
                                                                                           who can be cut. Seems simple enough — keep your stars, cut
                                                                                           your low-performance, low-potential employees.

                                                                                           This is the basis of performance management. As McKinsey
                                                                                           and Company explained, companies that conduct disciplined,
                                                                                           meritocratic assessments of performance and potential are
                                                                                           well placed to make good personnel decisions. Businesses
                                                                                           should be able to assess which types of talent drive business
                                                                                           value today and which will drive it three years from now, as
                                                                                           well as which talent segments are currently available and
                                                                                           which will be in the future.2

                                                                                           However, some talent areas are easier to measure than
                                                                                           others. Assessing top sales people is relatively easy – they
                                                                                           can be measured against their sales figures. But what about
                                                                                           employees who deliver value every day in ways that are vital
                                                                                           to the success of your company in far less transparent ways?
                                                                                           Every organization has key players who deliver value but do it
                                                                                           in ways that may not be easily measured or captured in some
                                                                                           performance reviews. Can your talent management initiatives
                                                                                           identify these Invisible Employees? Or does your current
                                                                                           process let these employees fly under the radar?




                                	 McIlvaine,	Andrew	R.	Riding	Out	the	Storm.	Human	Resource	Executive	Online.	January	1,	2009.	http://www.hreonline.com/HRE/story.jsp?storyId=162283435
                                1


                                2
                                    	 Guthridge,	Matthewl	McPherson,	John	R.;	and	Wolf,	William	J.	Upgrading	Talent.	The	McKinsey	Quarterly.	December	2008.	http://www.mckinseyquarterly.com/Organization/
                                      Talent/Upgrading_talent_2260
II. Who Are Your Invisible Employees?
  You recognize that your organization’s top performing employees — your rock stars — are the
  ones who drive bottom-line results. And you probably feel you know who they are — your top
  sales person, your No. 1 technical guy and so on. But not every organization realizes that the
  supporting cast — the unsung heroes — also contributes in many less apparent but no less
  important ways to your success. These are your Invisible Employees.


  The Invisible Employee can take many forms:
  •      Yesterday’s Superstars: These are the old reliables who may have jumped off the fast track to
         achieve a better work-life balance, but that doesn’t mean they’re has-beens. But they are seasoned and
         sharp and they step up in a crisis. They can also be valuable mentors.3

  •      The Connectors: This may be the account executive who manages a key vendor relationship or the
         project manager who keeps a critical technical team on task and on budget. In social-networking-speak,
         these are your connectors and brokers.4

  •      The Advisors: Whether they are truth tellers or go-to-managers who understand the ways of your
         organization, they make your organization run smoothly.5


  In a down economy, these Invisible Employees are the ones who can bring much-needed
  stability to your workforce — they keep people on task and productive as your business works
  through these tough times.

  Without a performance management system that allows you to recognize their contributions,
  the best you can hope is that you don’t cut these people by accident. Is there a chance they will
  resent the fact their value isn’t recognized and leave for an opportunity elsewhere? Maybe not
  today, but that outcome is more likely when things improve. The more likely hazard you face
  is mixing up these invisible employees with the low-performing, low-potential employees who
  are keeping a low profile or the low-performing, low-potential employees who seem to have a
  knack for surviving.

  Does your organization have a way to recognize your Invisible Employees?




  	 DeLong,	Thomas	J.	and	Vijayaraghaven,	Vineeta.	Let’s	Hear	It	for	B	Players.	Portfolio.com.	http://www.portfolio.com/resources/insight-center/2007/09/11/Lets-Hear-It-for-B-Players
  3


  4
      	 Cross,	Robert	L.;	Parise,	Salvatore;	Weiss,	Leigh	J.	The	role	of	networks	in	organizational	change.	McKinsey	Quarterly.	April	2007.		http://www.mckinseyquarterly.com/the_role_of_
        networks_in_organizational_change_1989
  5
      	 DeLong,	Thomas	J.	and	Vijayaraghaven,	Vineeta.	Let’s	Hear	It	for	B	Players.	Portfolio.com.	http://www.portfolio.com/resources/insight-center/2007/09/11/Lets-Hear-It-for-B-Players
III. In Tough Times, Talent Matters
                                The quality of your people matters all the time, but perhaps never more than now. In good times, you
                                hope that your rock stars and Invisible Employees will lead you to the Promised Land — IPOs, huge year-
                                end bonuses and jumbo shrimp at the Holiday Party. These days, many have more modest goals in mind.
                                Unfortunately, the fear that comes along with the current economic uncertainty will lead many companies
                                to make decisions they didn’t necessarily think through carefully. However, making bad decisions quickly is
                                not a virtue. Here are three quick talent management recommendations for tough times:


                                                                                                •    Cut smart if you must cut: No company enjoys firing people,
                                                                                                     but it’s worse to fire the wrong people — it’s unfair to the employee and
                                                                                                     your business. Some cuts can be avoided by finding efficiencies. Cisco
                                                                                                     took that approach in shedding 8,500 jobs in 2001. When the company
                                                                                                     redesigned roles and responsibilities to improve cooperation among
                                                                                                     functions and reduce duplication of effort, talented employees were
                                                                                                     more satisfied in a more collaborative workplace.6 Can you hang on to
                                                                                                     more people by working smarter? Possibly. But if you do need to make
                                                                                                     cuts, how will you decide who to keep?
PERFORMANCE >>




                                                                                                •    Think long-term: Although this may seem obvious — like telling the
                                                                                                     Lakers to win the game by scoring more points — but in a downturn,
                                                                                                     the temptation to focus on this quarter instead of two or three years
                                                                                                     down the road is very real. According to research from McKinsey and
                                                                                                     Company, decisions made at companies without any strategic planning
                                                                                                     process are twice as likely to have generated extremely poor results as
                                                                                                     extremely good ones — more than a fifth of them generated revenue
                 POTENTIAL >>                                                                        75 percent or more below expectations.7 Bad decisions have bottom-
                                                                                                     line results. Don’t get caught up in the moment — make performance
                                                                                                     decisions based on data.

                                                                                                 •   Set the tone for the future: Employees have long memories.
                                                                                                     If you recognize the value of your invisible employees today, they may
                                                                                                     or may not remember it when they decide whether or not to remain
                                                                                                     with the company when the economy improves. But ignore their
                                                                                                     contributions and treat them shabby today? They’ll definitely remember
                                                                                                     that. See that star? That’s them leaving your organization. Even if you
                                                                                                     are not worried about tomorrow’s retention issues, you can’t overlook
                                                                                                     today’s productivity and engagement issues. As one HR director
                                                                                                     recently told HR Executive magazine: “When times are easy, a company
                                                                                                     can espouse all kinds of wonderful values, but it’s the hard times that
                                                                                                     let employees really see whether those values are genuine or simply
                                                                                                     platitudes. Employees understand that, during tough times, there are
                                                                                                     going to be difficult decisions about who stays and who goes. They get
                                                                                                     it. But how you handle the process is incredibly important.”8


                                Your organization needs a performance management process to make any necessary cuts, nurture
                                superior performance and handle today’s talent challenges. Not everyone in your organization is
                                a rock star, but with the right tools, your managers can identify the Invisible Employees and vital
                                supporting cast members as you encourage higher performance from everyone.


                                6
                                    	 Bryan,	Lowell	and	Farrell,	Diana.	Leading	Through	Uncertainty.	The	McKinsey	Quarterly.	December	2008	http://www.mckinseyquarterly.com/Leading_through_uncertainty_2263
                                	 How	companies	make	good	decisions:	McKinsey	Global	Survey	Results.	The	McKinsey	Quarterly.	January	2009.		http://www.mckinseyquarterly.com/How_companies_make_good_
                                7

                                  decisions_McKinsey_Global_Survey_Results_2282
                                8
                                    	 McIlvaine,	Andrew	R.	Riding	Out	the	Storm.	Human	Resource	Executive	Online.	January	1,	2009.	http://www.hreonline.com/HRE/story.jsp?storyId=162283435
IV. Prepare Your Organization
                          for the Talent Challenges It Faces
                                Many organizations already understand that development and coaching are necessary. However,
                                not everyone realizes that preparing your organization for the talent challenges it faces requires
                                the tools and support systems to make data-driven performance management decisions.

                                It’s difficult for a paper-based performance management process to provide the visibility into
                                a business that allows managers to see quickly and easily how employees stack up in the
                                spectrum of Performance vs. Potential and how employee performance improves over time.
                                How can a data-driven, graphics-based process help your managers make these decisions?


                                                                                         •   It makes it easy. In a survey from Bersin and Associates, 45 percent
                                                                                             of respondents said their managers are incapable of differentiating
                                                                                             high and low performers, and 38 percent of managers believe they do
                                                                                             not have the training or support to adequately conduct performance
                                                                                             management tasks. Top executives and HR can get the ball rolling on
                                                                                             these initiatives, but your frontline managers are the ones who must be
                                                                                             able to execute them.9 Making it easy for your frontline managers with
                                                                                             easy-to-use, intuitive systems and the training to use them increases
                                                                                             their odds — and yours — of creating success.

                                                                                             It creates a support system. As mentioned earlier in this report,
PERFORMANCE >>




                                                                                         •
                                                                                             it’s easier to assess employee performance in some areas than others.
                                                                                             Managers need on-the-job support systems — built-in tips to reinforce
                                                                                             best practices, coaching guides, and tools to monitor and reward
                                                                                             appropriate performance that help them identify and nurture talent,
                                                                                             regardless of job title.10 With this support, your managers can easily
                                                                                             identify who the truly talented people are, whether they are your top
                 POTENTIAL >>                                                                performers, your Invisible Employees or the high-potential employees
                                                                                             who can grow into high-performance employees.

                                                                                         •   Providing clarity. Even though identifying the potential of individual
                                                                                             employees and improving their performance is a valuable feature of
                                                                                             a performance management system, the high-level, helicopter view
                                                                                             of your organization allows you to see performance in a new way,
                                                                                             identifying both risks and opportunities. A graphics-based performance
                                                                                             management solution can offer this high-level view into the organization
                                                                                             with visuals that are built after reviews are completed.




                                9
                                 	 Levensaler,	Leighanne.	The	Time	Is	Now.	Talent	Management	Magazine.	January	2009.	http://www.talentmgt.com/departments/dashboard/2009/January/828/index.
                                   php?pt=a&aid=828&start=0&page=1
                                10
                                    	Stolovitch,	Harold	D.	Apply	Low-Cost	Measures.	Talent	Management	Magazine.	January	2009.	http://www.talentmgt.com/columnists/human-peformance/2009/
                                     January/836/index.php
V. Conclusion
  For most organizations, it’s hard enough to hire or develop high-performing employees.
  Retaining a low performing/low potential employee in place of a high performing/high potential
  one is a bad business practice and completely avoidable if your managers have the right tools
  to guide these critical decisions.

  Cutting during a downturn is painful, but when it is done with insight, these cuts can ensure
  a company’s profitability and future competitiveness. As McKinsey explained it, “companies
  should use this period as an opportunity to upgrade talent and better engage existing staff.
  This means reinvesting a percentage of the capital liberated from cost cutting into, for example,
  selective recruiting and development programs and in efforts to safeguard the culture and to
  redesign jobs so that they are more engaging to the remaining employees.”11

  The economic realities in 2009 will mean that companies will need to take action. Make sure
  that the moves you make identify both your top performers and your invisible employees and
  not only address today’s business needs but prepare you for better times in the future.




  About Sonar6
  Sonar6	is	the	only	graphics-based	performance	management	system	that	is	easy	to	learn,	easy	to	use	and	simplifies	staff	
  performance	management,	enabling	organizations	to	enhance	employee	development,	make	better	people	decisions	and	drive	
  organizational	improvement.	Through	its	graphics-based	interface,	users	can	create	great	staff	performance	reviews	online,	gain	
  access	to	helicopter	views	of	the	organization	and	make	more-informed	staff	decisions.	Awarded	product-of-the-year	2007	from	
  Human	Resource	Executive	Magazine,	Sonar6	is	offered	as	a	Software-as-a-Service	(SAAS)	delivery	model	and	is	used	by	small	and	
  large	companies	throughout	Australasia,	Asia,	Europe	and	the	United	States.	For	more	information,	visit	www.sonar6.com.



   	 Guthridge,	Matthewl	McPherson,	John	R.;	and	Wolf,	William	J.	Upgrading	Talent.	The	McKinsey	Quarterly.	December	2008.	http://www.mckinseyquarterly.com/Organization/Talent/
  11

     Upgrading_talent_2260

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The Invisible Employee: Recognizing Your Best Hidden Assets

  • 2. I. Introduction: Ready. Shoot. Aim. Some companies aren’t just cutting, they’re hacking. They’re cutting deep and fast. But are they cutting smart? A recent article in HR Executive magazine assessed the dangers that exist when companies cut with little insight during the current downturn. “All too often downsizings follow a similar pattern: Executives decide that the workforce must be cut by 5 percent to save money, the cuts are apportioned across the workforce, and then the HR executive is asked to oversee the reductions and ensure the process doesn’t violate any laws or regulations.” That’s the unfortunate reality for many businesses. But even as these economic dark clouds PERFORMANCE >> gather, the article did offer a glimmer of sunshine. “Companies that have a rigorous performance-appraisal system in place will be the most prepared to ride out the economic storm.”1 OK, but how does “a rigorous performance appraisal process” work? Ideally, managers need to be able to put their POTENTIAL >> employees on a grid of performance vs. potential (like the one at the left) so they can see clearly who they need to keep and who can be cut. Seems simple enough — keep your stars, cut your low-performance, low-potential employees. This is the basis of performance management. As McKinsey and Company explained, companies that conduct disciplined, meritocratic assessments of performance and potential are well placed to make good personnel decisions. Businesses should be able to assess which types of talent drive business value today and which will drive it three years from now, as well as which talent segments are currently available and which will be in the future.2 However, some talent areas are easier to measure than others. Assessing top sales people is relatively easy – they can be measured against their sales figures. But what about employees who deliver value every day in ways that are vital to the success of your company in far less transparent ways? Every organization has key players who deliver value but do it in ways that may not be easily measured or captured in some performance reviews. Can your talent management initiatives identify these Invisible Employees? Or does your current process let these employees fly under the radar? McIlvaine, Andrew R. Riding Out the Storm. Human Resource Executive Online. January 1, 2009. http://www.hreonline.com/HRE/story.jsp?storyId=162283435 1 2 Guthridge, Matthewl McPherson, John R.; and Wolf, William J. Upgrading Talent. The McKinsey Quarterly. December 2008. http://www.mckinseyquarterly.com/Organization/ Talent/Upgrading_talent_2260
  • 3. II. Who Are Your Invisible Employees? You recognize that your organization’s top performing employees — your rock stars — are the ones who drive bottom-line results. And you probably feel you know who they are — your top sales person, your No. 1 technical guy and so on. But not every organization realizes that the supporting cast — the unsung heroes — also contributes in many less apparent but no less important ways to your success. These are your Invisible Employees. The Invisible Employee can take many forms: • Yesterday’s Superstars: These are the old reliables who may have jumped off the fast track to achieve a better work-life balance, but that doesn’t mean they’re has-beens. But they are seasoned and sharp and they step up in a crisis. They can also be valuable mentors.3 • The Connectors: This may be the account executive who manages a key vendor relationship or the project manager who keeps a critical technical team on task and on budget. In social-networking-speak, these are your connectors and brokers.4 • The Advisors: Whether they are truth tellers or go-to-managers who understand the ways of your organization, they make your organization run smoothly.5 In a down economy, these Invisible Employees are the ones who can bring much-needed stability to your workforce — they keep people on task and productive as your business works through these tough times. Without a performance management system that allows you to recognize their contributions, the best you can hope is that you don’t cut these people by accident. Is there a chance they will resent the fact their value isn’t recognized and leave for an opportunity elsewhere? Maybe not today, but that outcome is more likely when things improve. The more likely hazard you face is mixing up these invisible employees with the low-performing, low-potential employees who are keeping a low profile or the low-performing, low-potential employees who seem to have a knack for surviving. Does your organization have a way to recognize your Invisible Employees? DeLong, Thomas J. and Vijayaraghaven, Vineeta. Let’s Hear It for B Players. Portfolio.com. http://www.portfolio.com/resources/insight-center/2007/09/11/Lets-Hear-It-for-B-Players 3 4 Cross, Robert L.; Parise, Salvatore; Weiss, Leigh J. The role of networks in organizational change. McKinsey Quarterly. April 2007. http://www.mckinseyquarterly.com/the_role_of_ networks_in_organizational_change_1989 5 DeLong, Thomas J. and Vijayaraghaven, Vineeta. Let’s Hear It for B Players. Portfolio.com. http://www.portfolio.com/resources/insight-center/2007/09/11/Lets-Hear-It-for-B-Players
  • 4. III. In Tough Times, Talent Matters The quality of your people matters all the time, but perhaps never more than now. In good times, you hope that your rock stars and Invisible Employees will lead you to the Promised Land — IPOs, huge year- end bonuses and jumbo shrimp at the Holiday Party. These days, many have more modest goals in mind. Unfortunately, the fear that comes along with the current economic uncertainty will lead many companies to make decisions they didn’t necessarily think through carefully. However, making bad decisions quickly is not a virtue. Here are three quick talent management recommendations for tough times: • Cut smart if you must cut: No company enjoys firing people, but it’s worse to fire the wrong people — it’s unfair to the employee and your business. Some cuts can be avoided by finding efficiencies. Cisco took that approach in shedding 8,500 jobs in 2001. When the company redesigned roles and responsibilities to improve cooperation among functions and reduce duplication of effort, talented employees were more satisfied in a more collaborative workplace.6 Can you hang on to more people by working smarter? Possibly. But if you do need to make cuts, how will you decide who to keep? PERFORMANCE >> • Think long-term: Although this may seem obvious — like telling the Lakers to win the game by scoring more points — but in a downturn, the temptation to focus on this quarter instead of two or three years down the road is very real. According to research from McKinsey and Company, decisions made at companies without any strategic planning process are twice as likely to have generated extremely poor results as extremely good ones — more than a fifth of them generated revenue POTENTIAL >> 75 percent or more below expectations.7 Bad decisions have bottom- line results. Don’t get caught up in the moment — make performance decisions based on data. • Set the tone for the future: Employees have long memories. If you recognize the value of your invisible employees today, they may or may not remember it when they decide whether or not to remain with the company when the economy improves. But ignore their contributions and treat them shabby today? They’ll definitely remember that. See that star? That’s them leaving your organization. Even if you are not worried about tomorrow’s retention issues, you can’t overlook today’s productivity and engagement issues. As one HR director recently told HR Executive magazine: “When times are easy, a company can espouse all kinds of wonderful values, but it’s the hard times that let employees really see whether those values are genuine or simply platitudes. Employees understand that, during tough times, there are going to be difficult decisions about who stays and who goes. They get it. But how you handle the process is incredibly important.”8 Your organization needs a performance management process to make any necessary cuts, nurture superior performance and handle today’s talent challenges. Not everyone in your organization is a rock star, but with the right tools, your managers can identify the Invisible Employees and vital supporting cast members as you encourage higher performance from everyone. 6 Bryan, Lowell and Farrell, Diana. Leading Through Uncertainty. The McKinsey Quarterly. December 2008 http://www.mckinseyquarterly.com/Leading_through_uncertainty_2263 How companies make good decisions: McKinsey Global Survey Results. The McKinsey Quarterly. January 2009. http://www.mckinseyquarterly.com/How_companies_make_good_ 7 decisions_McKinsey_Global_Survey_Results_2282 8 McIlvaine, Andrew R. Riding Out the Storm. Human Resource Executive Online. January 1, 2009. http://www.hreonline.com/HRE/story.jsp?storyId=162283435
  • 5. IV. Prepare Your Organization for the Talent Challenges It Faces Many organizations already understand that development and coaching are necessary. However, not everyone realizes that preparing your organization for the talent challenges it faces requires the tools and support systems to make data-driven performance management decisions. It’s difficult for a paper-based performance management process to provide the visibility into a business that allows managers to see quickly and easily how employees stack up in the spectrum of Performance vs. Potential and how employee performance improves over time. How can a data-driven, graphics-based process help your managers make these decisions? • It makes it easy. In a survey from Bersin and Associates, 45 percent of respondents said their managers are incapable of differentiating high and low performers, and 38 percent of managers believe they do not have the training or support to adequately conduct performance management tasks. Top executives and HR can get the ball rolling on these initiatives, but your frontline managers are the ones who must be able to execute them.9 Making it easy for your frontline managers with easy-to-use, intuitive systems and the training to use them increases their odds — and yours — of creating success. It creates a support system. As mentioned earlier in this report, PERFORMANCE >> • it’s easier to assess employee performance in some areas than others. Managers need on-the-job support systems — built-in tips to reinforce best practices, coaching guides, and tools to monitor and reward appropriate performance that help them identify and nurture talent, regardless of job title.10 With this support, your managers can easily identify who the truly talented people are, whether they are your top POTENTIAL >> performers, your Invisible Employees or the high-potential employees who can grow into high-performance employees. • Providing clarity. Even though identifying the potential of individual employees and improving their performance is a valuable feature of a performance management system, the high-level, helicopter view of your organization allows you to see performance in a new way, identifying both risks and opportunities. A graphics-based performance management solution can offer this high-level view into the organization with visuals that are built after reviews are completed. 9 Levensaler, Leighanne. The Time Is Now. Talent Management Magazine. January 2009. http://www.talentmgt.com/departments/dashboard/2009/January/828/index. php?pt=a&aid=828&start=0&page=1 10 Stolovitch, Harold D. Apply Low-Cost Measures. Talent Management Magazine. January 2009. http://www.talentmgt.com/columnists/human-peformance/2009/ January/836/index.php
  • 6. V. Conclusion For most organizations, it’s hard enough to hire or develop high-performing employees. Retaining a low performing/low potential employee in place of a high performing/high potential one is a bad business practice and completely avoidable if your managers have the right tools to guide these critical decisions. Cutting during a downturn is painful, but when it is done with insight, these cuts can ensure a company’s profitability and future competitiveness. As McKinsey explained it, “companies should use this period as an opportunity to upgrade talent and better engage existing staff. This means reinvesting a percentage of the capital liberated from cost cutting into, for example, selective recruiting and development programs and in efforts to safeguard the culture and to redesign jobs so that they are more engaging to the remaining employees.”11 The economic realities in 2009 will mean that companies will need to take action. Make sure that the moves you make identify both your top performers and your invisible employees and not only address today’s business needs but prepare you for better times in the future. About Sonar6 Sonar6 is the only graphics-based performance management system that is easy to learn, easy to use and simplifies staff performance management, enabling organizations to enhance employee development, make better people decisions and drive organizational improvement. Through its graphics-based interface, users can create great staff performance reviews online, gain access to helicopter views of the organization and make more-informed staff decisions. Awarded product-of-the-year 2007 from Human Resource Executive Magazine, Sonar6 is offered as a Software-as-a-Service (SAAS) delivery model and is used by small and large companies throughout Australasia, Asia, Europe and the United States. For more information, visit www.sonar6.com. Guthridge, Matthewl McPherson, John R.; and Wolf, William J. Upgrading Talent. The McKinsey Quarterly. December 2008. http://www.mckinseyquarterly.com/Organization/Talent/ 11 Upgrading_talent_2260