The document discusses improving organizational performance through better management of human capital. It introduces the concept of "hucamentrics" which uses data to measure employee competence, engagement and opportunities within an organization. This allows organizations to calculate their return on human capital. The document suggests most organizations only achieve 63% of potential performance due to issues with people management. It advocates shifting organizations' performance curves by improving coaching for "C performers", setting clear objectives, development plans and accountability for results. The second part discusses developing a "talent mindset" and focusing on strategic competencies, positions and drivers to better execute on organizational strategies and improve workforce ROI.

1. For Leaders Only In Pursuit of Excellence Sessions Engaging People for Better Performance May 10, 2011

2. “If we were meeting here one year from today, looking back over that time, what needs to have happened for you to be satisfied with the performance of your organization?” FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction

3. Leaders are Ready for Growth FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction

4. Leaders are Ready for Growth The Top CEO Challenges for 2011 (Conference Board 2011) FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction

5. Imagine … If all of your workforce was ready, willing, and able – what could your business achieve? FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction

6. The Situation …Moving Mountains The critical driver for performance lies in your ability to put the right people in the right positions and align them to your strategy. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction

7. The Situation …Moving Mountains Most organizations produce results at about 63% of potential performance capacity. (Harvard Business Review) 63% 63% Actual Performance Lost Potential Performance FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction

8. The Situation …Moving Mountains Employees are responsible for 85% of the variation in executing on strategy. It is not the brilliance of strategy that creates competitive advantage – it is the efforts of people. (Success Factors Research 2010) FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction

9. The Focus … Moving Mountains Leaders need to look internally to improve execution and business growth … FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction

10. The Focus … Moving Mountains 1. The Top 4 Strategies to Improve Business Results: (Conference Board 2011) 2. 3. 4. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction

11. To provide tools and insights to improve organizational performance. Part 1 Shifting the Curve for Better Results Part 2 Increasing the ROI of Your Workforce Part 3 Being More than the Sum of the Parts FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction Today’s Focus …

12. The Outcome: No matter what your starting point, you can always drive improvement. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Introduction

13. Part One: New Perspectives Leading for Performance: Shifting the Curve for Better Results

14. “If you can’t explain it simply, you don’t understand it well enough.” Albert Einstein FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

15. If an organization wants to succeed – today and in the future – it must attract and retain great employees. “In the long run, the most profitable companies are those that take care of their people … without people who are happy and productive, the company’s long-term prospects are mediocre at best.” Dr Jack Fitz-Enz FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

16. The impact of good people on the organization cannot be underestimated. 85% of the variance in execution against strategy is explained by people performance. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

17. Without people performance, a great strategy is just an idea – it’s your people who make it real. The greatest potential for increased execution, productivity, and profitability lies in your people. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

18. One solution … Hucamentrics FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

19. Hucametrics The new science of tracking and applying human capital data to predict employee and business performance based on cause and effect. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

20. The Formula … Competence Engagement Organizational Opportunity = Return on Human Capital Or, more simply put … Ready, Willing, and Able. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

21. Turning data into business intelligence… FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

22. Where to start: HCVA: Human Capital Value Added HCROI: Human Capital Return on Investment PROHC: Potential Return on Human Capital FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

23. Handout One: Organizational Hucametrics FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

24. Human capital is the greatest lever for performance today. Hucametrics provide a baseline of where the organization stands today. The next step is to get a firm grip on performance variance to improve the metrics. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

25. Every organization has a distribution curve of their employees’ performance levels – but it’s a question of how well you can see it. Only 3% of organizations measure their performance curve. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

26. The Performance Curve FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

27. Where do you focus? The A Performer: goes beyond expectations and shows self-starting initiative The B Performer: valued, steady, and meets the needs of their role – not dispensable The C Performer: does not meet expectations The D Performer: Lacks contribution and is not engaged in the organization FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

28. The C Performers hold great potential for significant contribution variance. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

29. So many C Performers are simply placed in the wrong position, mismanaged, or under coached. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

30. Handout Two Moving the C Performer FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

31. The linchpin for shifting people performance - leadership. “Better people are not needed for better performance.” *Peter Drucker FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

32. How well managers manage and are managed determines whether business goals will be reached and the level of workforce performance achieved. “Workers’ attitude reflects, above all, the attitude of their management.” *Peter Drucker FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

33. The responsibility of leadership: Improve managers’ competence and confidence in building people performance and being accountable for the results. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

35. Provide open and honest feedback

36. Consistently invest in development

37. Support managers to be responsible for employee performanceFOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

39. Link competencies to performance needsFOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

41. Improve manager competence and accountability for team performance – coaching skillsFOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

42. Shifting the performance curve is founded in leadership that measures what matters and invests responsibly with accountability. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part One

43. Part Two: Innovative Ideas Leading with Engagement Increasing the ROI on your Workforce

44. “"If we did all things we were capable of doing, we would truly astound ourselves." Thomas Edison FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

45. Execution is about focusing resources on the objectives that will reap the biggest reward for your organization. It's more than just having a strategy; it is about translating the strategy into action on a daily basis. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

46. The Shifting Drivers of Business Value "More than 75% of the growth in US market capital in the last 10 years has come from "intangible assets" - assets which are not listed on the balance sheet." Bersin & Associates FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

47. Organizational capability is a shift in mindset to improve execution through people... "The firm's ability to manage people to gain competitive advantage” Dave Ulrich FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

48. How does the organization ensure that it has the talent in place - the capability - to execute on its strategy? FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

49. Developing a "talent mindset" is based on the belief that: talent is a positive differentiator for the organization and individuals that it can be developed, and that it leads to reaching current and future goals. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

50. A Talent Mindset is founded in the belief that people are the primary driver for success. It is proactive rather than reactive. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

51. Organizations need a business process that drives performance at both the organizational and individual level with emphasis on aligning competencies with business goals. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

52. The first step to improving Workforce ROI through organizational capability is focus. Where should attention be placed to make a difference? FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

53. The key to productivity gains for an organization is to manage the performance variance at the pivot points: Strategic drivers Strategic competencies Strategic positions FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

54. Organizational Competencies Organizational competencies are the combination of required skills, necessary information, appropriate performance measures, and the right corporate culture dynamics that is needed to achieve the strategic vision. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

55. Step One What competencies are needed organizationally to deliver against the strategy? Case Study Handout FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

56. Step Two What positions matter most? FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

57. Pivotal Positions These are the pivotal positions. Pivotal positions vary by industry and organization and time. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

58. Pivotal Positions To identify: the organization must look across the enterprise and objectively determine which position(s) have the greatest ability to impact (positively or negatively) key business results. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

59. Case Study Part Two FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

61. Focus development resources on these strategically valuable positions

62. Determine the starting point for investing to increase workforce ROIFOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

63. Not every employee is equally important in driving your organizational strategy. Different jobs contribute differently to both top and bottom line, and the performance of individuals differentially contributes even more. Few organizations apply this concept. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

64. Measuring bench-strength is about targetingthe variance in individual / group performance. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

65. The Performance / Potential Matrix FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

66. Development strategy must be based on business strategy and the requirements for effective execution. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

67. Achieving a significant increase in the Workforce ROI for your organization starts and ends with focus. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

68. Define the strategic drivers to focus the organization’s actions and attention Define the organizational competencies to focus the workforce on the actions that create competitive advantage for the organization FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

69. Define the pivotal positions that will have the greatest impact on organizational execution and performance Define the competencies most needed for exceptional performance in the pivotal positions FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

70. Define the benchstrength of the people in the pivotal positions to determine the skill gaps and focus for investment Invest and measure FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

71. This overall approach builds a solid “People Portfolio”. You connect strategy to people for the performance you need to achieve results. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Two

72. Part Three: Renewed Energy Leading with Effectiveness Being More than the Sum of the Parts

74. and 42% are judged as poor.*Harvard Business Review FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

75. The Challenge Few teams function as well as they could but the stakes are higher with senior teams – lack of effectiveness at the top can slow down or derail an organization. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

76. The Situation A real team is more than the sum of its parts … most top teams are simply work groups where synergy does not create leverage and the group is the sum of its parts. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

77. The Situation Increasingly, top teams are essential to the success of the organization. The top team has broader and deeper reach than one leader alone and its performance has a multiplier effect. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

78. Often, however, the leadership team is at best a collection of strong individuals who sometimes work at cross-purposes. Being seasoned executives with excellent individual performance does not naturally translate to an effective team. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

79. The Situation In most situations, smart people do not make smart teams. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

80. The Situation The critical question is; Why can’t a group of sophisticated, experienced, and intelligent professionals come together to create a solid, high-performing top team? FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

81. Answer: There are specific roadblocks and obstacles that prevent senior teams to actually work as effective teams and these issues need to be addressed and resolved. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

82. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

83. How do we bridge the gap between potential and performance? Potential Performance FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

84. The Solution The Four Dimensions of a Successful Top Team Ensure the top team does just the work only it can do … a clear and compelling definition of the performance opportunities and challenges that require collective effort is essential. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

85. The Solution The Four Dimensions of a Successful Top Team Address team dynamics and processes… clarify expectations for team collaboration and put in place supportive systems and processes to ensure accountability FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

86. The Solution The Four Dimensions of a Successful Top Team Master the performance dimensions needed for success… shared understanding of common goals and values, interactive skill development, and build capabilities to respond to change FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

87. The Solution The Four Dimensions of a Successful Top Team Ensure the right skills are present … capabilities, attitudes, and beliefs needed to meet specific performance opportunities and challenges are more important than title and position FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

89. Only 38% of executives feel their teams allocate their time appropriately

90. Only 30% of top teams work in productive collaborationMcKinsey and Company 2011 FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

91. You can not just convene a group of people and call them a team FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

92. A real team has one essential characteristic – interdependent work. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

93. Leading the High-Performance Top Team FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

94. The top team leader’s role requires the wearing of two hats … team member and team leader. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

95. Team leadership is based on balancing two things: FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

96. The leader of the top team needs to determine the best approach. The LEAD Style Assessment FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

97. Finding the Right Approach PARTICIPATIVE 2 1 NON-DIRECTIVE DIRECTIVE 3 4 NON- PARTICIPATIVE FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

98. The Senior Leader’s Approach FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

100. Clarify meeting objectives

101. Questioning and testing for understanding

102. Managing the allocation of time to topicsFOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

104. Summarizing the discussions and results of work

105. Identifying next steps and accountabilitiesFOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

106. The Next Steps What should the team be focused on? What is the value-add from working as a team? What are the expectations for working together? What are the processes needed? What are the needed dynamics? Where is the team now, what are the gaps, and what needs to happen? FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

107. The Next Steps Today’s challenges demand not only great personal effort, but also first-class collective leadership. Make the investment to build a truly top team. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Three

108. Part Four: Immediate Impact Focus your thinking and commit to key takeaways

109. Leaders must always, in every decision and action, put economic performance first. The organization can justify its existence only by the economic results it produces. Paraphrased from Peter Drucker FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Four

110. Leaders must also make work productive and support the worker to achieve. Organizations have only one true resource – people. It performs by supporting workers to be productive. Paraphrased from Peter Drucker FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Four

111. Leaders also have a social responsibility for the organization. None of our organizations exist by itself or are an end in itself. Paraphrased from Peter Drucker FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Four

112. Leaders are ready for growth. To achieve growth effectively, organizations need to shift focus from financial capital and process efficiency to people performance. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Four

113. “We have become an employee society” Peter Drucker FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Four

114. Maximizing employee contribution requires a shift to a “talent mindset”. Proactively connecting strategy and people to provide focus, meaning, and results. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Four

115. Imagine … If all of your workforce was ready, willing, and able – what could your business achieve? FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Four

116. Moving Mountains: The critical driver for performance lies in your ability to put the right people in the right positions and aligning them to your strategy. FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Four

117. Key Insights: FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Four

118. The Next Steps The Bigger Future Session FOR LEADERS ONLY IN PURSUIT OF EXCELLENCE Part Four

119. www.BluteauDeVenney.com Thank You!