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Performance Equations
1.
Successful Performance Development Taking
the Guesswork Out of Building Organisational Performance © Performance Equations Ltd. All Rights Reserved. 1
2.
Successful Performance Development Company
History Established in 1997 Niche organisational development and change consultancy Specialising in building: – High performance culture – High performance leadership – High performance teams – Service excellence & customer experience management At the core of all our work is on-going research, diagnostics, delivering measurable results. We describe the causal links between Performance Drivers, Organisational Effectiveness and Performance Results Design & implement solutions Measure the results © Performance Equations Ltd. All Rights Reserved. 2
3.
Successful Performance Development Clients
We Have Worked With O2 © Performance Equations Ltd. All Rights Reserved. 3
4.
Successful Performance Development Our
Philosophy About Organisational Performance Pinpoint diagnosis, robust prioritisation and decision-making An integrated systemic approach to providing solutions for the organisation as a whole Solutions that are contemporary, robust, sustainable Solutions that create energy, drive and engagement Support infrastructure that transfers learning into application As much or as little external support as required Measure the value © Performance Equations Ltd. All Rights Reserved. 4
5.
Successful Performance Development High
Performance Culture © Performance Equations Ltd. All Rights Reserved. 5
6.
Successful Performance Development The
Need for Better Organisational Performance Consider 90% of organisations believed that a clear, action oriented understanding of their business strategies could significantly influence their performance and business success. However Less than 60% of senior leaders and less than 10% of employees believe a clear understanding of their c mp n ’ o ay sstrategy actually exists in their organisation Less than 30% of senior leaders believe their og n ain ’ ra i t s s o strategy are effectively implemented In over 60% of organisations analysed through our consultancy work there is no perceptible link between strategy and day to day operations. © Performance Equations Ltd. All Rights Reserved. 6
7.
Successful Performance Development
The Challenge of Translating Strategy into Action 90% of organisations are unable to fully implement the strategy te ’ s e t omuht , f r a dmo e p ni hy e p n s v c i ef t n me o , ny l n g a n 95% of employees d n t n esa dte c mp n’ srtg o o ud rtn h i o a y t e y r s a 85% of executives spend less than an hour per month talking about strategy 73% of employees b lv te b se d n c mmui t te eee h i o s s o ’ o i r t n ae h c company vision and strategy clearly Companies on average deliver only 63% of the financial performance their strategies promise Only 46% of executives & senior managers believe leadership gains commitment effectively in their organisations © Performance Equations Ltd. All Rights Reserved. 7
8.
Successful Performance Development A
Word About Employee Engagement 12% employees actively engaged 70% neither engaged or disengaged 18% actively disengaged Cost to business €260 billion © Performance Equations Ltd. All Rights Reserved. 8
9.
Successful Performance Development Characteristics
of an Engaged Workforce Pride in the company Belief in the organisations objectives Trust in colleagues, direct boss and senior leadership Desire to work to make things better U d rtn i o b s e sc net n te‘g e p tr’ n esa d g f ui s o tx a d h b g r iue n n i c Respectful of, and helpful to, colleagues Win n s t ‘ teet mi’ l g e s og h x a l l i o r e Keeping up to date with developments across the business Feeling valued Belief in their ability to do their best every day But employee engagement is not the same as employee satisfaction © Performance Equations Ltd. All Rights Reserved. 9
10.
Successful Performance Development Diagnosing
the Performance Culture Performance Bearing Mechanisms Strategic Focus Performance Management Leadership Structure Results / Outcomes Business Performance Satisfaction Change People Outputs Overall Effectiveness 1st 10th 25th 50th 75th 90th 99th %ile %ile %ile %ile %ile %ile %ile 48 95 © Verax International Ltd. All Rights Reserved.030908 10 © Performance Equations Ltd. All Rights Reserved.
11.
Successful Performance Development Relationship
Matrix RESULTS/OUTCOMES Business Performance Satisfaction Change People Outputs. Understanding the drivers of performance outcomes Client specific strategic is critical in knowing which outcomes can be levels to pull. added STRATEGIC FOCUS PERFORMANCE MANAGEMENT LEADERSHIP STRUCTURE PRICING/VALUE FOR MONEY + + PRODUCT/SERVICE PERFORMANCE + BRAND IMAGE/TRUST + + EASE OF DOING BUSINESS - - COMPETITIVE RESPONSIVENESS TO CUSTOMERS - STRATEGIES TOTAL SUPPORT PACKAGE + EMPATHY/COMPATIBILITY - © Performance Equations Ltd. All Rights Reserved. 11
12.
Successful Performance Development High
Performance Leadership and Developing Talent © Performance Equations Ltd. All Rights Reserved. 12
13.
Successful Performance Development
Leadership Bench Strength Business challenges are becoming more complex and more difficult to solve 60% of leaders say they face challenges that go beyond their individual capabilities 84 % of executives and senior managers believe the definition of effective leadership has changed in the last 5 years Only 7% of executives believe their companies have enough talented managers to pursue the most promising growth opportunities Only 36% of companies rate their overall leadership capacity to ee uesrtg a “o d o “xee t xct t e y s g o ” rec ln” a l 40% of externally hired senior managers fail within 18 months © Performance Equations Ltd. All Rights Reserved. 13
14.
Successful Performance Development
The Way Ahead Leadership today needs to be about creating adaptive performance cultures that provide the conditions for innovation to flourish in today's much more challenging and highly complex business environments In order to do that leadership capability and talent needs to be developed as a journey at critical career transition points The leadership capability requirements at each point need to address the contextual setting of the business challenges faced and the requirements of the role © Performance Equations Ltd. All Rights Reserved. 14
15.
Successful Performance Development
Developing talent through the leadership pipeline Leadership Pipeline: Passage A long-term, Six systemic Passage Five approach to Passage Four developing a Passage sustainable Three Passage supply of leaders Two ready to execute Passage One your strategy now and in the future —Charan, Drotter, Noel, The Leadership Pipeline, 2001 © Performance Equations Ltd. All Rights Reserved. 15
16.
Successful Performance Development Question
? Is your talent management strategy meant to satisfy a tactical performance requirement? Or does it have to satisfy a strategic organisational requirement? It could be both © Performance Equations Ltd. All Rights Reserved. 16
17.
Successful Performance Development Different
Approaches Everyone is talented in some area, to some degree (Inclusive) Only some people have the innate qualities to lead the company into aftr ta c n q i b d sr e (Exclusive) uue h t a ’ ue e e ci d t t b © Performance Equations Ltd. All Rights Reserved. 17
18.
Successful Performance Development Categories
of Talent Well Placed – Well suited for their current role or a lateral position – Unlikely to move to the next level or expanded responsibilities within the next 2 years—particularly considering the expected growth of the business – May require development in order to scale and grow in their current role Expandable – Seen as being capable of contributing to the organisation in a role with greater complexity, impact, scope and scale than their current role – D mo s ae t th yc nsa a dgo wt t og n ain b s e s e nt td h t r a e a c l n rw i h ra i t ’ ui s e h e s os n Talent Pool – An employee who has demonstrated top performance in increasingly challenging roles and have the differentiating attributes to rise to and succeed in more senior and/or more complex positions through expansion of current responsibilities, lateral movement to different area of responsibility or promotion to the next level – Talent demonstrates what it will take to lead and grow the organisation beyond the current strategy © Performance Equations Ltd. All Rights Reserved. 18
19.
Successful Performance Development Performance
Does Not (Always) Predict Potential Current performance is a necessary condition for potential but does not guarantee success at the next level High Potential Staff by Performance Status High Performance Staff by Potential Status 7% 29% 93% 71% BUT Most high Only 7% of performers are high potentials not high are not high potential performers © Performance Equations Ltd. All Rights Reserved. 19
20.
Successful Performance Development
What Determines Talent High Applied Capability experience Performance Talent Talent + + Differentiators = Pool High Potential Knowledge Capacity & skills © Performance Equations Ltd. All Rights Reserved. 20
21.
Successful Performance Development Connecting
Business Capability to Business Strategy Organisational Vision Business Strategy Strategic Cultural priorities Business priorities drivers Organisational values and behaviour Team capabilities Individual capabilities © Performance Equations Ltd. All Rights Reserved. 21
22.
Successful Performance Development How
to build organisational performance © Performance Equations Ltd. All Rights Reserved. 22
23.
Successful Performance Development How
to build organisational performance Recognise that organisational performance development is a journey not an event © Performance Equations Ltd. All Rights Reserved. 23
24.
Successful Performance Development How
to Build Organisational Performance Diagnose and measure accurately performance gaps and drivers © Performance Equations Ltd. All Rights Reserved. 24
25.
Successful Performance Development How
to Build Organisational Performance Build a learning system that addresses the development needs of each level Bridge the gap between learning and real work with action learning Design and implement a support infrastructure © Performance Equations Ltd. All Rights Reserved. 25
26.
Successful Performance Development How
to Build Organisational Performance Involve leaders at all levels as champions, teachers, mentors, and in linking learning and feedback to goals Engage heads, hearts and hands by providing a flexible mix of learning methods and approaches © Performance Equations Ltd. All Rights Reserved. 26
27.
Successful Performance Development
To discover more contact us at info@performance-equations.co.uk 01252 545 171 © Performance Equations Ltd. All Rights Reserved. 27
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