Talk delivered at Employee Benefits Live 25 September 2013

2. How reward and motivation are linked -
cause or effect?
Creating value through people; how to engage
your talent through the people performance
equation.
Getting strategic about your reward strategy.
Reward communications - the medium, the
meaning and the message.
Attracting, motivating and retaining top talent
through strategic reward?
…a new perspective.

3. creating
value
measuring
value
changing for
value
measurable People and Performance
Simon
Nash
Jersey Guernsey
Cayman London
British Virgin Islands

4. • adjust performance expectations
• long term rewards
• short term incentives
• internal competition
• coercion
• laissez-faire
• cognitive alignment and engagement
case study
“Fail, Fail, Fail, Fail, Fail, Fail, Fail…”
seven failed strategies …

5. Ben

6. subjectively meaningful
strategically manageable
psychologically measurable
value is…

7. value is subjectively meaningful
O(c) – SC = PC + M(o)
after Heskett, Sasser and Schlesinger (1997)

8. value is subjectively meaningful
– = +
O(c) – SC = PC + M(o)
Outcome (for
the client)
Margin (for the
organisation)
Production Costs
(overhead)
Service Costs
(price)
Heskett et al (1997)

9. Value to Client
Results Price Cost Profit
Value to Provider
value is subjectively meaningful

10. …the truth nobody
ever tells you
about HR…

11. Luke Johnson
Chairman; Risk Capital Partners et al.
The Truth about the HR department
“HR is like many parts of the modern
business; a simple expense and a
burden on the backs of the
productive workers.
Other divisions that can become the
enemy include IT, legal, accounting
and marketing. They don’t sell or
produce. They are the amorphous
support services.”
value is strategically manageable

12. Keith H. Hammonds
Fast Company
Why We Hate HR
“HR is the corporate function with
the greatest potential -- the key
driver, in theory, of business
performance -- and also the one
that most consistently under-
delivers.”
value is strategically manageable

13. Professor David Ulrich
Michigan Business School
A New Mandate for Human Resources
“Should we do away with HR? …
I must agree there is good reason
for HR’s beleaguered reputation.
It is often
ineffective, incompetent and
costly; in a phrase it is value
sapping… But the truth is HR has
never been more necessary.”
value is strategically manageable

14. What
do
you
see?

15. Stories about law firms, people, HR and
change
Choluteca River
Choluteca Bridge

16. “The journalist interviewing the
Egyptian General after the six day
war in 1967…”
Strategy is important…

17. “Lure the enemy 500 miles deep into your territory
and wait for winter”
The strategic manual said…
value is strategically manageable

18. Thomas Stewart
The Wealth of Knowledge
“The CFO can tell you how big the
company’s payroll is but cannot tell you
the replacement costs of employees’
skills, much less whether they are
appreciating or depreciating.
The HRD may know how much the
company spends on formal training but
does not know how much learning
resulted from it.”

19. Thomas Stewart
A Modest Proposal…
“Set ambitious objectives for
the transformation of your
business through innovative
people and performance
strategies …
or if you’re not going to use it, take your HR
department outside and blow the sucker up”

21. Hon Patrick J Schiltz
value is psychologically measurable
“On being a Happy, Healthy
and Ethical Member of an
Unhappy, Unhealthy and
Unethical Profession” (1999)
Depression
Anxiety
Mental Illness
Alcoholism
Drug Addiction
Divorce
Ill health
Suicide
the danger of being a lawyer…

22. “success” formula (in most organisations)
Work
Hard
Achieve
Success
Enjoy
Happiness
value is psychologically manageable

23. actual success formula (in every human brain)
fully enjoy
the present
moment
perform at
higher
functionality
see
better
results
value is psychologically measurable

24. a “happiness advantage”
value is psychologically measurable
Dr Shawn Achor
“when people work with a
positive mind-set, performance
on nearly every level –
productivity, creativity,
engagement – improves”
31% higher productivity (Tax Accountants)
37% greater sales (Financial Services)
19% better diagnosis (General Practitioners)

25. “I’m not interested in happy lawyers” Stanley J Berwin
value is psychologically manageable

26. “I’m not interested in happy lawyers”
value is psychologically manageable
dopamine
noradrenaline
(norepinephrine)
cortisol
serotonin
cognition
motivation
attention
working memory
creativity
pattern recognition
learning
social bonding
meaningfulness
fight / flight
stress
heart function
reaction speed
cognitive filtering

27. value is psychologically measurable
study your population

28. value is psychologically measurable
What (some) HR people and managers do…
WINNERS
PUPPY DOGSSCAPEGOATS
S.A.B.’s

29. value is psychologically measurable
What smart managers and HR people do…

30. what
worked?

31. creating
value
measuring
value
changing for
value
measurable People and Performance
Q&R
questions and
responses…