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Managing Smart – Cutting-Edge Employee Management Practices for the New Economy   The Smart Guide to Human Resource and Management Seminars   Presented by Warren J. Rutherford The Executive Suite
Program ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Managing Smart Survey Please rank on a scale of 1 to 5, 5 being the highest, your company’s score for each statement below.  Statement  Score Average Score = (Total/5) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Managing Smart Survey ,[object Object],[object Object],[object Object],[object Object]
The Economy We Knew ,[object Object],[object Object]
The New Economy We Need to Know & Understand ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Why it is Important! ,[object Object],[object Object],[object Object],[object Object],[object Object]
Strategies to Succeed ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Formal Processes & Procedures and Professional Standards ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Alignment Enhances Productivity and Profit ,[object Object],[object Object],[object Object],[object Object]
Company Needs ,[object Object],[object Object],[object Object],[object Object],[object Object]
Aligning Your Management Practices to Manage People in the Right Places at the Right Times Requires - ,[object Object],[object Object],[object Object]
Aligning Your Management Practices to Manage People in the Right Places at the Right Times Requires - ,[object Object],[object Object],[object Object]
Developing a Smart Job Description ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Position Function Profile Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Functional Assessment of Each Employee ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Aligning Employee Strengths to the Position Function Profile ,[object Object],[object Object],[object Object],[object Object],[object Object]
Creating Position Function & Position Appraisal Alignment ,[object Object],[object Object],[object Object],[object Object]
Creating Position Function & Position Appraisal Alignment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Creating Position Function & Position Appraisal Alignment ,[object Object],[object Object],[object Object],[object Object],[object Object]
Formal Appraisal Mechanism ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Self Appraisal Mechanism ,[object Object],[object Object],[object Object],[object Object]
360° Appraisal Mechanism ,[object Object],[object Object],[object Object],[object Object]
Team/Work Unit Appraisal Mechanism ,[object Object],[object Object],[object Object]
Creating Alignment with Professional Standards ,[object Object],[object Object],[object Object]
Creating Alignment with Professional Standards ,[object Object],[object Object],[object Object]
Summary ,[object Object],[object Object],[object Object],[object Object]
Thank you! For more information -  Warren J. Rutherford Owner The Executive Suite 129 Airport Road Hyannis, MA 02601 [email_address] www.theexecutivesuite.com 508-778-7700

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Managing smart

  • 1. Managing Smart – Cutting-Edge Employee Management Practices for the New Economy The Smart Guide to Human Resource and Management Seminars Presented by Warren J. Rutherford The Executive Suite
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  • 28. Thank you! For more information - Warren J. Rutherford Owner The Executive Suite 129 Airport Road Hyannis, MA 02601 [email_address] www.theexecutivesuite.com 508-778-7700

Hinweis der Redaktion

  1. Please review the Managing Smart Survey and complete the survey. It will help you better understand some of the concepts and practices we will discuss during our session.
  2. Now that you have listed your level, total the score and divide by 5. Based on your average score, with a show of hands – Who has an average equal to or greater than 4? Who has an average equal to or greater than 3 but equal to or less than 3.8? and Who has an average less than 3? Don’t worry, we will talk about how you can each make some improvements to this process.
  3. I am reviewing information I presented during our Hiring Smart session to emphasize why we need a different approach to managing our workforce. Some time back I read about a study performed in 1978 the Stern School of Business at New York University of 5,000 of companies in the United States. This study identified that there was a 95% correlation between a company’s balance sheet and it’s business value – shares x stock price, . P&L = Company Value Simply put – in 1978 95% of a company’s value was reflected in it’s financial statements. That remaining 5% consisted of things not easily measured – the intangibles in the business. Hmmm, what might they be? Let’s look further.
  4. In 2005 the Stern School redid the study with the same companies and found that there was now only a 28% correlation between the balance sheet and the business’ value. What makes up the remaining 72%? Today’s performance drivers include your - Intellectual Property, Strategy, Brand, Systems, Processes, Access to Capital, Off balance sheet items, Customer reputation, and the Executive Team We know that we are in a globally competitive and intellectual economy. We rely more in a KNOWLEDGE-BASED economy on these intangibles to increase company value. In other words, what a company is worth today is much more dependent on non-traditional assets and things not measured on the P&L and Balance Sheet. Obviously some things have changed behind what truly drives company value in today’s intellectual economy. To illustrate another way – how many of you would commit to stay with your current employer until retirement? What are the motivators for you to want to stay with a company? When we discussed this with the staff at one of my clients they indicated they cared more about being a part of the company growth process, they wanted more involvement in developing processes, serving customers better, and trying to reduce costs – was my client listening? The majority of a company's value is intangible.  Staff now devote the majority of their time to solving complex and routine problems through the application of their knowledge, collaboration, and leverage of organizational systems. Nearly 8 out of 10 employees are involved in producing services - expectations of value, rather than tangible products. The majority of tangible products are now bought primarily on the basis of brand, reputation, service, employee engagement, and other intangible factors. The full spectrum of intangible value - activities related to knowledge, collaboration, leverage of operational systems, and other associated activities have never been financially valued, or systematically analyzed. And this information is applicable across ALL industries!
  5. In 2005 researchers at the Center for Advanced Human Resource Studies at Cornell University looked at this question with 250 small businesses – How do people contribute to the success of our business? They examined 3 areas – hiring, managing , and motivating, and found that if you could achieve workforce alignment – having all the dots connected – you would have a more productive and profitable company. Workforce alignment requires The right types of people, In the right places at the right times , Doing the right things right. A company with the right types of people has employees with the knowledge and skills necessary to help that company achieve its goals. Does that make sense?
  6. When looking at employee management practices and workforce alignment, they found 4 strategies used to manage people – Formal Processes & Procedures – have job duties & descriptions so employees know their roles & responsibilities, & regular feedback through performance appraisals; (job descriptions are not well-written and performance appraisal systems are not effective in our experience, although this is beginning to change) Direct Monitoring – closely monitor day-to-day activities & tightly control pace & schedule at which work is completed; (this is considered the “old-fashioned, tried and true way to manage – Frederick Taylor’s school of Scientific Management) Professional Standards – great deal of discretion to monitor own performance & trust to get the job done right the first time without direct oversight; and (not in use that much, requires managers and owners to “let go,” Culture & Peer Pressure – expected to track each others work & effort & to provide feedback to each other about job performance. (hard to argue with this, but little tie into company goals, so how effective can it really be?) They found that businesses that managed with formal processes and procedures and had established professional standards created the best, long-term workforce alignment. Does it make sense then that it is better to define where we are going and what we need to do to get us there to create a more aligned and focused workforce?
  7. In the past when I worked in corporate and client settings I found it remarkable that companies could even survive when there was no alignment. In one company I worked in we increased our performance 400% (from 10% to 40%) in 1 year; afterwards we inched up at a 10% to 20% performance improvement each and every year! How – I spoke to my fellow employees – I listened – I developed a plan that reflected THEM! After time, however, when we created and then maintained that alignment, I found that it took little effort to develop and even less effort to maintain – employees and management both saw the benefits and helped foster the improvements necessary over time.
  8. One of the ways I work with clients to develop their company needs is to ask a series of pointed questions as part of a business planning process. In order to start the change process off right we need to ask and answer these questions – and it certainly helps if we engage our employees in this process. Who are you? What do you do? When do you do it? Where are you going? Why do you do it? How are you going to get there? and What resources do you need to get there?. Additionally, how did you engage your employees in the answers to these questions? How did you and do you continuously engage your employees in the implementation process? (allow for some questions – would anyone share an example of their process with us?)
  9. Here are 6 steps to alignment of your management practice to manage people in the right places at the right times – The first one is needed because it is the basis for your formal procedures and your professional standards. The second one is needed – I will argue on a continual basis and in a variety of ways – so that the focus is and remains clear. The third practice is needed so that you build relevant pieces of your corporate strategy into each and every job position and function. When we work with clients on their temporary and permanent placement and executive recruitment needs it is important for us to understand the company’s strategy and plan for these very reasons.
  10. The fourth step is important to maximize the performance of each employee. The fifth step now links each position’s requirements to your company goals, and The last step ensures that your employees have had the ability to help you ensure your success by participating in a meaningful way in the development of metrics and the appraisal mechanism.
  11. A thorough job analysis of each employees’ position can be used to prepare and update job descriptions, identify job qualifications, develop criteria for appraising employee performance, define compensable factors for evaluating the relative worth of jobs, and redesign jobs to enhance job satisfaction and employee productivity. In the steps listed, the job analysis becomes the first step to ensure we have a company – position functions fit. I my experience I have written well over 1,500 job descriptions in a variety of businesses and would enjoy speaking with you about a process that is appropriate for your company.
  12. When you develop a functional profile analysis you are able to identify the discrete decision attributes that are the source of person and job fit success If you have an interest in discussing this profile analysis for your company – let’s talk.
  13. As job functions became more reliant on worker knowledge I found it important to develop a way to identify the thinking and decision-making patterns required for these different job functions. The information discussed now has helped a number of clients develop a better approach to employee selection, management, and motivation. This process was developed by Dr. Robert Hartman through the Attributes Index Profile. Think about it. The majority of your time, do you make decisions with your HEAD, HAND or your HEART? Story of 3 people – pure head, pure hand, and pure heart thinkers. Drop X in front of them, sees how they approach it. Head – understand situation, asks a lot of questions, and wants to think about it, put structure to it. Hand – picks it up, starts to play with it, wants to try and complete the task. They both start arguing with each other Heart – what’s it matter if you are both going to fight about it? Personal perspective – how will it be accepted by rest of team? Now that you understand these 3 dimensions of thought a little bit, how they would work together, trick is that none of us is pure in any one of these; we each have ability to think in all 3 of these ways within us. Question is – what is the ratio of these 3, because we each develop different levels of ability and preference for each. When you are hiring for a position have you thought about the dominant thinking patterns the position requires – and the attributes and strengths for the position? I believe you need to understand this information to help you develop a more effective alignment of the person to the position and to the company.
  14. This step assumes you know the strengths (decision attributes) required of the position and you know the strengths of the employees performing in the position. It also assumes that you have the ability to reassign or realign certain position functions in order to make the job role more aligned with the employee’s strengths.
  15. This step is rarely addressed, and is a major reason why employees are not connected strategically to a company’s focus and success. We know we need accountability but are often overlooking the simple steps that can establish the accountability – quite simply – we need to talk with our employees and ask them for their input and ideas. We need to value them better.
  16. The 2 nd step in this alignment process is to identify and agree upon function based measures, The 3 rd step now looks to identify attribute or strength-based metrics such as – Diagnostic - information gathering, Analytical - forward, conceptual, & strategic thinking, Thoroughness, Decisiveness, Self-confidence, Stress management, Technical expertise, Interpersonal awareness, Managing performance, Managing change, & Personal credibility The 4 th step now looks to link company goals to the position – which ones, and to what degree can the employee in this function contribute? These discussions tend to provide a substantial amount of information between the parties and can lead to changes in goals, changes in functional responsibilities, amongst other changes.
  17. There are several helpful performance appraisal designs that can be used. Let’s review the strengths of each of these.
  18. This is the most common model. It works well, as long as both parties to the evaluation process are trained on process and expectations.
  19. Another model, usually best in combination with either of the other 3. Should not be left to stand on its own, particularly where employees and supervisors are new to the process.
  20. In a 360 appraisal the employee, co-workers, and supervisors participate in each employee’s appraisal.
  21. This mechanism works well where there are well defined work units or teams and where each of the employees understands the work expectations and performance standards of the others. It would also assume that the members of the work unit developed standards of performance together and agreed upon the process to measure success. I am able to develop appraisal mechanisms that are appropriate for your company and can discuss this with you after the meeting.
  22. You can do this with some focused effort and be prepared to transform the way you and your employees do business.
  23. I am available to talk with each of you further about your needs.