Most company strategies only deliver 63% of their promised financial value due to various obstacles. Common reasons for poor performance include unclear accountabilities, organizational silos blocking execution, and inadequate performance monitoring. A new approach is needed that sets a new standard for performance by selecting best-fit performers, training them to produce outcomes, engineering their work environment, and motivating them. This directly impacts business results by defining outcomes, skills, incentives, and other factors that influence how people accomplish tasks and processes critical to effective performance.

1. Improving Human and Organizational Performance

4. Where do the Results Go? * Harvard Business School Publishing, 2005 7.5% Inadequate or unavailable resources 5.2 % Poorly communicated strategy 4.5% Actions required to execute not clearly defined (no clear outcomes) 4.1% Unclear accountabilities for execution 3.7% Organizational silos and culture blocking execution 3.0% Inadequate performance monitoring 3.0% Inadequate consequences or rewards for failure or success 2.6% Poor senior leadership 1.9% Uncommitted leadership 0.7% Other obstacles (including inadequate skills and capabilities) 63% Average Realized Performance 37% Average Performance Loss

5. A New Standard for Employee Development… Select “ best-fit” performers Train and enable them to produce Outcomes Engineer their work environment Motivate them

6. minimal exemplary Level of performance new standard … Sets a New Standard for Performance… standard minimal exemplary Percent of workforce Percent of workforce

7. …That Directly Impacts Business Results There are… … that affect how people accomplish… … that are critical to effective… … which enable the achieve-ment of… … that are the real drivers of… Influences Tasks Processes Outcomes Business Results

8. Performance-based Career Development Outcomes in Role Skills Incentives Competencies Feedback Experiences Tools/Systems Enabling Outcomes Work Effort (The Things We Do) Success in Role The Price of Admission The Differentiators Next Level

9. But What Happens? Outcomes in Role Skills Incentives Competencies Feedback Experiences Tools/Systems Enabling Outcomes Work Effort (The Things We Do) Success in Role The Price of Admission The Differentiators Next Level ...But instead focus on these We often do not define these

10. But What Happens? Performers resist this because they understand that getting results is not enough… We need to define the “what else” for them… The Outcomes Skills Incentives Competencies Feedback Experiences Tools/Systems Work Effort (The Things We Do) Next Level The result is that this is what the performers see Additional Skills Additional Competencies Additional Experiences

11. Back Up

12. Primary Causes for Low Performance 0% 10% 20% 30% 40% 50% 60% 70% 17% 22% 23% 28% 37% 60% High Individual Stress Levels Fear of Failure or Punishment Inability to Envision Successful Outcomes Lack of or Poor Company-Sponsored Training Inability to Concentrate on Task at Hand Low Worker Self-Esteem Low Compensation Poor or Insufficient Performance Feedback 40% 39% Lack of Clear Individual Goals No Performance Standards Reward Not Performance Based 31% Poor Performance Rewarded 31% No Career Planning 14% 9% 8% Source: Closing the Human Performance Gap The Conference Board