PIPL - Practice Area Management Development Practice

STRICTLY CONFIDENTIAL © Copyright 2016 Progressive Intelligence
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info@piplinc.com
USA • UK • INDIA
Progressive Intelligence
Partners in Achievement
Solving the Management Conundrum
Capabilities Assessment & Talent Growth
Leadership DevelopmentLeadership Development
Value Proposition for Human Capital Investment
Dr. Sanjeev B. Ahuja
Managing Director
sanjeev.ahuja@piplinc.com

2 STRICTLY CONFIDENTIAL © Copyright 2016 Progressive Intelligence
Overview
Economics of Professional Development
Talent Growth - the Burning Platform
What is our approach and how we help
What the HR Experts are saying
The Management Conundrum
The PIP Model
Continuous Improvement Proposition

Talent Management (raconteur.net 10 March 2016)
Now’s the time to back talent. “The credibility of the human resource function is
the first major barrier businesses must overcome to enable talent management to
become a future boardroom agenda item of importance.”
Source: CIPD

Statistics on Staff Engagement
*80% of UK companies face a lack of employee engagement; (2014: UK ranked 18th among 20 countries)
Development of Talent must be strategic goal; securing business goals will be a natural side-effect!
#1 Problem: Poor Management
• Little effort by Managers to be role models or
spend time with their staff
• Staff take their lead from managers
• Unfettered apathy among staff towards their
job and achieving results
#2 Problem: Attrition of Talent
 Staff’s abilities are unknown
 Negative attitudes of unvested staff fester
and go unchecked
 What is important to staff is overlooked
 Staff is seen as just another resource
*ORC International Global Perspectives 2015
Worldwide trends in employee engagement

Staff want to be inspired at work
• Ask and listen to staff’s views
• Tell staff what they appreciate about them
• Give staff the recognition, in the team and
also with their own boss
• Do not treat staff as ‘resources’ to be driven
to ever higher targets
• Know your relationship with staff is important
Supporting Leadership Ambitions Builds Loyalty Among Millenials
“Employees expect the company to invest in them, and they give back in terms of
better productivity and innovation” - Cath Everett, Different ways of developing your people, Raconteur 10 March 2016
People wish foremost to be treated as people, to know what is expected of them, and to maximize their
talents in doing more of what they are good at … they want to be encouraged to ‘enjoy the holiday’, not
made to feel guilty because they’d have to be covered during their absence.”

In most companies …
• Development is constrained by backward looking static processes that often focus
on monetary aspects of variable compensation rather than on talent growth
• Where offered, talent growth is restricted to training courses in skills or industry
certifications rather than capabilities required in a well-rounded professional
Companies are looking for a better way …
• To stem the unaffordable attrition of valuable personnel to competition
• To improve utilization and strengths of their existing pool of talent
• To consciously tap into more of what their staff can offer
• To continuously enhance capabilities of their staff
Almost all companies identify with the issue
People are a critical source of competitive advantage; talent growth is a key factor
in retaining the best and brightest engaged - yet apathy and attrition runs high!
The Management Conundrum
“Recruiting and retaining talented staff is key to business success, but can be seen as a short-term
distraction rather than long-term necessity.” - Clare Bettelley, Now’s the time to back talent, Raconteur 10 March 2016

Winning staff’s loyalty requires motivating and engaging them. Staff give their
best when firms put their interests first; those of the business will naturally follow
Attrition contributes a min. of 2.5% of the salary bill in additional recruiting and
training costs, 50% loss in productivity in the first year of an employee, indirect
economic impact due to sub-optimal quality of work, and lost opportunity costs
Economics of Professional Development
HR Investments
Savings
Return on
Investments
Lower cost
of Sourcing
“Seeding”
Lower cost
of Attrition
“Farming”
Higher ROI from
Training & Development
“Nurturing”
Higher ROI from
Perf. Improvement
“Harvesting”
In one population of 200 management staff,
the directly measurable costs of a 5% rise in
attrition were circa £500k per annum!
Human Resources KPI
• Staff Longevity
• Career Trajectory
• Employee Satisfaction
• Recruit/On-board costs
• Value Contribution

Current appraisal approaches and tools foster wrong discussions
• Assessment of past performance is backward looking
• Approach is designed to support a decision rather than arrive at one
• Predominant focus is on gaps or shortcomings rather than strengths
• Individual assessment is independent of team fit or industry context
• Assessment deteriorates to a negotiation about variable pay
• At worst, managers’ attitude is paternalistic or patronising
Professional development is divorced from day-to-day realities
• It is usually outside the context of the working environment
• No opportunity to apply any of the learning once back at work
• After two weeks, little is remembered and no sustainable improvement
A concerted ‘pull’ from the staff is missing and there is limited follow-up
Talent growth needs to be forward-looking, rooted in job responsibilities, and
reflecting individual aspirations tied into team and industry benchmarks!

Personal and professional development must be the aim of talent growth, making
it integral part of day-to-day operations for a firm and its people to prosper
Companies can quantify the financial cost and measure the economic benefits of
this ongoing investment, which must be tracked to ensure adequate returns
3-key elements characterize
best-in-class solutions
• A practical methodology
governed by a formal
holistic framework
• An approach that is
embedded into the day-to-
day routine
• An easy to use basic toolkit
that allows a quick start

Observations (Static)
Penalties/RewardsPerformance Reviews
Diagnosis (Forensic) Well-Being (Dynamic)
Results
• In the present (realities)
• Founded in the team
• Exploits strengths
• Bolsters weaknesses
• Continuous improvement
• In the future
• Ad hoc comparison
• Neglected opportunity
• Forensic analysis
• Speculative decrees
• In the past
• Individual emphasis
• Ignores assets
• Focuses on gaps
• Infrequent checks
Appraisals (Backward) Development (Forward)

Dynamic proactive assurance process rather than a static forensic critique
Main focus is on installing management processes that will drive development as
part of day to day work activity
Integrated within the team structure rather than for a sole individual
• Focus is on developing the skills most needed for team excellence
Based on expressed aspirations and observed outputs
• No retrospective navel-gazing that is speculative and subjective at best
Talent goals linked to team performance and industry benchmarks
• Contribution by each individual is tracked within the specific context of
assignments and accountability, but in light of professional development
and talent growth goals

Aim is to develop capable and effective staff
Professional development must become part of daily routine and talent growth
must be linked to performance assurance
Foundational building blocks
• Capability assessments
• Performance reviews
• Opportunity analysis
Financial business case
• Achieve cost savings
• Secure return on investment
The PIP Model - Value Drivers

The PIP Model - Foundation (Example)
1 Below Par
2 Basic Requirements
3 – 4 Focus on Improvement
5 – 6 Focus on Big Picture
Managerial
Functional
Operational
Vocational
Capability Selection
Competency Targets

The PIP Model - Talent Growth Pyramid
ManagerialManagerial OperationalOperational VocationalVocational FunctionalFunctional
Strategy
Excellence
Productivity
Performance
BusinessBusiness
FunctionFunction
TeamTeam
IndividualIndividual
Collaborate
Deliver
Direct
Motivate
Define
Steer
Shape
Inspire
R
esponsibility
Professional
D
evelopm
ent
Current Target

The PIP Model - Goal Setting Process
Results
Define clear,
succinct and
meaningful goals
1 4 7 10
3 6 9 12
2 5 8 11
Develop a joint
agenda and value
proposition
Communicate and
widely evangelise
value proposition
Enable the team
to deliver the
value proposition
Agree a shared
strategy to deliver
real value
Connect individual
goals to derived
value
Agree on mix of
internal/external
capabilities
Assess individual
strengths and
weaknesses
Acknowledge
strengths & shore
up weakness
Agree how roles
play to strengths
for development
Agree SMART
performance
objectives
Guide individual
performance to
meet targets
Manager
Individual
Vocational OperationalFunctionalManagerial

Continuous Improvement Proposition - Cycle

Assess
Guide
Develop1
2
3
Coaching for Performance
Mentoring for Growth
Follow-up Calls
Performance Reviews
Periodic Meetings
Periodic Team Workshops
Personal & Team Counselling
Key Performance Indicators
Annual Objectives
1-on-1 Reviews
Project-based guidance/advice
Capability Assessment
360°evaluations (min. of 4)
Continuous Improvement Proposition - Process

 Results from the review
• Capability assessment
• Team
• Individual
• Relative comparisons
• Individual vs. Peers
• Individual vs. Team
• Individual vs. Industry
• Team vs. Industry
• Recommendations
• Performance evaluation against KPI
• Projected delivery and growth prospects
• Opportunities for raising performance
• Areas of strengths and further development
• Summary of conclusions
Continuous Improvement Proposition - Analysis

 Assess: Set standards and review gap
• Self-assessment
• 1-on-1 assessment interview
• Multiple referee feedback
 Aim: Identify opportunities
• Placement relative to peers, team, and industry
• Suitability to current role
• Performance and growth
 Align: Exploit assets and overcome liabilities
• Individual recommendations
• Team recommendations
 Comply: Assure performance (monitor, measure, mentor)
• Measurable KPI for individual and the team
• Periodic reviews and feedback (quarterly/annual)
 Target: Establish the goal-post
• Characterize objectives in terms of min/stretch targets
Continuous Improvement Proposition - Milestones

 Reference Collateral
• Team
- Desired capabilities and target qualifications
• Individual
- Description of current role and copy of resume
- Desired capabilities and target qualifications (Default: Team)
- Annual Objectives and Targets: Top-3 accountabilities (+ next 2, if desired)
- List of referees
 Deliverables
• Project schedule
• Questionnaires
- Self-Assessment
- Referees response
- Consultant’s response (Interview notes)
• Reports
- assessment, comparisons, observations, and recommendations
Continuous Improvement Proposition - Project

Review
Methodology
Define
Scope
Agree
Criteria
Set
Targets
Assess
Team
Review
Results
Prepare
Reports
Concept
Presentation
Sample
Reports
Scope of
Assessment
Pool of
Referees
Performance
KPI
Opportunity
Standards
Capability
Selection
Evaluation
Targets
Interview
Referees
Consolidated
Results
Normalised
Results
Evaluation
Feedback
Assessment
Report
Personal &
Team Counsel
Customisation Project Setup Objectives Benchmarks Evaluation Normalization Final Results
Continuous Improvement Proposition - Project Plan

Sample Project Outputs

PERFORMANCE MANAGEMENT
Business Value
10 small, 7 medium, 3 large sized projects15 Dec 2007Productivity: Projects Completed
$70m - $80m15 Dec 2007Opportunity: Value of Projects
$5mQuarterlyUtility: Value/Cost of Project
80%15 Dec 2007Execution: On-schedule/In-budget
2007 TargetsTargetsTarget DatePerformance Objectives
1. Joan must establish and gain the buy-in of key stakeholders to a new structured procurement process
2. She must introduce critical quality metrics in the procurement process to allow close monitoring for delivery assurance
HIGHLIGHTS (List of critical achievements in key areas of job responsibility)
3. As a member of the management team, Joan must influence her peers in the adoption of the new quality process
Delivery Assurance, Governance & Compliance
70%QuarterlyPlanning: % Projects w/ Plan
70%QuarterlyQuality: % Projects w/ Quality Data
Continuous Improvement Proposition - KPI/Targets

Business Value
1. Joan successfully established and gained the buy-in of key stakeholders to the new structured procurement process
2. She introduced critical quality metrics in the procurement process to allow close monitoring for delivery assurance
3. As a member of the management team, Joan critically influenced her peers in the adoption of the new quality process
Continuous Improvement Proposition - Assess

Managerial
Functional
Operational
Vocational
Takes the lead in defining shared goals, stretches
(without intruding) across others’ issues, resolves
mutual dependencies, acts as catalyst for
collective action planning
6
5
3
2
1
4
Continuous Improvement Proposition - KPI/Targets
Instigates strategic thinking, repeatedly inspires
colleagues to align them behind key initiatives,
drives the creation of action plans, key enabler
for achievement of team goals through collective
delegation
6
5
3
2
1
4
Instigates strategic thinking, repeatedly inspires
colleagues to align them behind key initiatives,
drives the creation of action plans, key enabler
for achievement of team goals through collective
delegation
6
5
3
2
1
4
Takes the lead in defining shared goals, stretches
(without intruding) across others’ issues, resolves
mutual dependencies, acts as catalyst for
collective action planning
6
5
3
2
1
4
Leadership (4)
Execution (3)
Influence (3)
Teamwork & RM (4)
Self Management (4)
Sourcing Processes (3)
Systems Capability (3)
Strategic & Analytical (4)
Financial Understanding (3)
Legal T’s & C’s (4)
Negotiation Skills (4)
Communication (4)
Domain Expertise (4)
Cross Functional Breadth (4)
Organizational Fit (5)
Expectations Management (4)

O
SAT
BT
SBT
T
U
AT
2
1
4
5
6
3
Execution Teamwork Influence Leadership
2
1
4
5
6
3
Execution Teamwork Influence Leadership
Individual Observations Team Observations
• Joan can be an inspiring role model and consistently
meets or exceeds key expectations from a Grade 5 staff
• She is clearly an effective contributor, a collaborative
member of the team, and a thought leader
• She is often pitching-in to help others achieve shared
objectives, and regularly able to convince others of a
point of view
• She needs guidance on how to take the lead on
ideas she believes in and garner support for these
among her peers
• The team is expected to maintain relatively high
performance standards
• Joan appears to have strong aptitude and displays a
constructive attitude towards her peers
• She could help her peers with development of
effective performance measures, be a catalyst for
cooperation on complex cross-functional initiatives,
and act as a mentor and coach for colleagues who
need further development
• She needs guidance on how to take the lead on
ideas she believes in and garner support for these
among her peers

O
SAT
BT
SBT
T
U
AT
Execution
2
1
4
5
6
3
JS JLA DW DOS BSES
Teamwork
2
1
4
5
6
3
JS JLA DW DOS BSES
Influence Leadership
2
1
4
5
6
3
JS JLA DW DOS BSES
2
1
4
5
6
3
JS JLA DW DOS BSES

Business Value
1. Joan must proactively seek out higher value projects and attempt to add value beyond the original remit
2. She needs to track the schedule and budget more closely with quarterly or even monthly reviews
3. Joan must move up another notch on her oversight of higher quality and timely acquisition of critical data elements
Continuous Improvement Proposition - Reset

Employee
Assessment
Reports

Assessment
Reports
Self Evaluation
Referee EvaluationsResume & Role
Employee

Opportunity
Growth and Delivery
Delivery
Growth
S: Substantial
A: Appreciable
M: Modest
I: Insignificant
S
A
M
I
SAMI
T
SAT
Empower
Motivate
Coach
Change

Areas to Sustain
Areas to Develop
• Good influencing skills
• Eager to take on additional responsibility
• Focused on delivery to assigned tasks
• Strong motivator of her staff
• Would benefit from formal leadership
and management training
• Needs to be bold and take charge of
difficult situations more frequently
• Requires coaching to reach the next
level of performance

Summary
• Joan would also benefit from attending workshops on
Strategy and Operations, complementing her existing
skills to take on a bigger role in the future.
• Joan’s management skills are driven by intuition
and draw on her personality. She should be sent for
further management training, specifically oriented
towards Leadership Skills.
• Joan is very driven, with an eye for detail in service
delivery. She needs coaching on how to take a step
back and look at the big picture, rather than get
absorbed in the minutiae of daily activities.
Tim
Pennise
Bob
Meyeres
Stefanie
Dupuis
Rick
Grafton
Joan
Smith
Referee Pool
Manager - Present Colleague Associate Direct Reports
Continuous Improvement Proposition - Actions

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PIPL - Practice Area Management Development Practice

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