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Transcript of Managing smart
Managing Smart – Cutting-Edge Employee Management Practices for the New Economy
The Smart Guide to Human Resource and Management Seminars
Presented byWarren J. RutherfordThe Executive Suite
© theexecutivesuite.com 2009 2
Program Managing Smart Survey Our new economy – knowledge based Company future strategies – planning Formal Processes & Procedures Professional Standards Company Needs Alignment of Processes, Procedures, & Standards Position Description and Function Alignment Performance Appraisal and Company Strategy
Alignment
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Managing Smart Survey
1. We have a formal organization chart with job descriptions and responsibilities for each position.
2. We have developed a plan for evaluating our employees’ performance regularly.
3. We have developed a compensation plan that is equitable and motivating to employees.
4. We have written policies, procedures, and employee handbooks.
5. We trust employees to do the right things right.
Average Score = (Total/5)
Please rank on a scale of 1 to 5, 5 being the highest, your company’s score for each statement below. Statement Score
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Managing Smart Survey Results -
If your average score is 4 to 5, you are managing smart.
If your average score is 3 to 3.8, you are in the caution zone & need improvements to your management program. You can benefit from better alignment, making you much more productive & profitable.
If your average score is < 3, you are in the danger zone & are probably out of alignment, and much less productive & profitable than you could be.
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The Economy We Knew
1978 NYU Stern School of Business Study (5,000 companies)
95% correlation between balance sheet and business value
Balance Sheet
Intangible
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The New Economy We Need to Know & Understand 2005 NYU Stern School of
Business Study 28% correlation between balance
sheet and business value Intangibles – the 72%
Intellectual Property Strategy Brand Systems Processes Access to Capital Off balance sheet items Customer reputation Executive Team
Balance Sheet
Intangible
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Why it is Important! Only 5% of a workforce understands their
company’s strategy. Only 15% of senior management spends more
than 1 hour a month defining strategy and aligning operations to it.
Only 25% have their operations aligned to the strategy.
Only 40% align company from budget to strategy.
David Norton, Balanced Scorecard Report, Vol. 3, No. 5 (Sep/Oct 2001)
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Strategies to Succeed How do people contribute to the success
of our business? Cornell Study –
Workforce alignment requires - The right types of people, In the right places at the right times,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.
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Formal Processes & Procedures and Professional Standards 4 management strategies used to manage people –
Formal Processes & Procedures – Formal Processes & Procedures – have job duties & descriptions so employees know their roles & responsibilities, & regular feedback through performance appraisals;
Direct Monitoring – Direct Monitoring – closely monitor day-to-day activities & tightly control pace & schedule at which work is completed;
Professional Standards – Professional Standards – great deal of discretion to monitor own performance & trust to get the job done right the first time without direct oversight; and
Culture & Peer Pressure – Culture & Peer Pressure – expected to track each others work & effort & to provide feedback to each other about job performance.
Formal processes & procedures and professional standardsFormal processes & procedures and professional standards were found by the Cornell researchers as strongly and positively related to creating the best, long-term workforce alignment.
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Alignment Enhances Productivity and Profit Doesn’t it make sense that -
An aligned workforce increases productivity and profit, We need to better understand our employees to
further drive the success, growth, and performance of our business.
A study of large publicly traded firms, found that companies using “high performancehigh performance” human resource practices have market values that range from between $16,000 and $40,000 per employee higher than firms that do not use such practices.
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Company Needs What is your company’s long-term company strategy and
plan? Mission, vision, values, purpose. Have you involved your employees in its development? What
are some of the steps you used – retreat, questionnaire? How are you communicating that strategy and plan to your
employees, (in person, email, postings, meetings, interactive discussions); and
Are you using that strategy and plan in the design of your job descriptions, management practices, and performance appraisal processes so that you can - Enable your employees to understand what is needed for yours
and their future success?
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Aligning Your Management Practices to Manage People in the Right Places at the Right Times Requires -1. A better understanding of company’s needs by defining
and communicating your long-term company strategy and plan to your employees;
2. Communicating that strategy and plan as a management strategy – communicating what you want and need to do for your future success;
3. Defining (or refining) your job descriptions to better match your company strategy and plan so that they include the requisite essential functions and knowledge, skills, and abilities required to effectively perform the job;
© theexecutivesuite.com 2009 13
Aligning Your Management Practices to Manage People in the Right Places at the Right Times Requires -4. Matching an employee’s strengths (their natural
talents, potential and interests) to the position and minimizing the need to rely on an employee’s weakness to perform their functions;
5. Matching job functions to the accomplishment of company goals and objectives by establishing performance metrics and standards that accompany the functions so that they are job specific; and
6. Designing an appraisal process with the involvement of management & employees and providing effective training on implementation.
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Developing a Smart Job Description Conduct a thorough job analysis to develop the following
information – Information about the nature of the worknature of the work (e.g. duties and
responsibilities); The level of the worklevel of the work (e.g., degree of responsibility or
complexity); Job requirementsJob requirements (e.g., the knowledge, skills, abilities and
other characteristics needed to perform work effectively); Job qualificationsJob qualifications (e.g., years of education or experience
needed for the position); and Working conditionsWorking conditions (e.g., the psychological, emotional, and
physical demand placed on employees by the work environment).
Identify how the nature of the work relates strategically to the accomplishment of certain company goals and objectives
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Position Function Profile Analysis
Identify primary and secondary position tasks Aggregate tasks up to categories
(e.g. management, sales, finance, marketing, process)
Identify decision attributes for each category Develop a position-specific profile to measure an
employee’s match to the job profile as part of job description development process
Identify tasks or categories that could shift to other positions
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Functional Assessment of Each Employee We know that there are 3 ways we can think about anything –
Our head – systems & structure Our hands – practical, let’s get it done Our heart – empathy, the impact on others
Each of us has a different balance of these 3 styles & explains why our decisions and actions are different.
The way we make decisions & how we use them are at the core of who we are. They are key to our preferences, our strengths, and our weaknesses.
What are the dominant thinking patterns required for people in each position?
How does knowing that help to ensure that the employee in the position will be more successful in achieving position objectives and be more able to accomplish the desired person-future fit?
Think Position-Person Alignment & Workforce Alignment.Think Position-Person Alignment & Workforce Alignment.
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Aligning Employee Strengths to the Position Function Profile Once an assessment of an employee’s strengths as well
as their weaknesses has been performed – Identify which strength attributes match to the job
description key attributes, Identify whether the position requires the employee to
utilize any of his attribute weaknesses, Determine the possibility to reassign and realign certain
position functions amongst employees in order to maximize the use of each of their natural talents, and
Modify position functions to accomplish the reassignment and the realignment.
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Creating Position Function & Position Appraisal Alignment1. Establish policy connection between company
goals & employee goals –a. Improve communication between employee and
manager, b. Promote clarity around employee responsibilities,
project priorities and their linkage to company strategy and plans, and
c. Provide a fair and consistent framework to recognize individual levels of performance.
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Creating Position Function & Position Appraisal Alignment2. Identify function-based measures
a. E.g. – # of sales, # placements, etc.3. Identify attribute or strength-based measures
a. E.g. – Decisiveness, Self-confidence, strategic thinking, following directions, etc.
4. Identify company goals that directly link to specific position functions
a. Sales increase from x to y, # repeat customers increase from a to b, etc.
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Creating Position Function & Position Appraisal Alignment Incorporate –
Formal appraisal mechanismSelf-appraisal mechanism360° appraisal mechanismTeam/work unit appraisal mechanism
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Formal Appraisal Mechanism
Employee evaluated at established intervals (2x year).
Evaluator is a superior to supervisor. Common to all models:
Rating-based across different categories. Each category may be point-scored and/or weighted. Final result is numerical, tied to performance grid.
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Self Appraisal Mechanism
Employee completes self-appraisal form requesting honest, objective assessment of performance during performance period.
Utilized most frequently as part of a formal, 360°, or team-based appraisal.
Enables employee to reflect on performance. Enables superior to understand the employee’s
point of reference.
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360° Appraisal Mechanism
Employee performs self-evaluation AND is also evaluated by co-workers and superior(s).
May/may not be anonymous. Emphasis on teamwork to overcome wounded
egos. Employee critically reviews evaluation
comments, prepares performance improvement plan, discusses confidentially with superior(s).
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Team/Work Unit Appraisal Mechanism Work Unit (department, division, section, team)
evaluates performance for period under review. Each member of work unit completes appraisal
form that links to unit goals, objectives, strategies for performance period.
Unit performance results shared equally with all employees in unit.
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Creating Alignment with Professional Standards Monitor and trust – If either or some of the appraisal
mechanisms briefly described are utilized it then becomes important for ownership to establish regular review interviews (quarterly, semi-annually) and to trust and enable employees to execute AND to provide them to the tools to be successful.
Employees are often more rigorous in the standards they establish for themselves – if they know the they can be trustedtrusted.
Employees want to be trustedtrusted to be able to know how to get the job done rightget the job done right.
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Creating Alignment with Professional Standards Employees want to be able to innovate,
experiment, be creative – they want the standards to enable that capability to be more successful.
The standards employees adopt usually are self-enforcing.
Practical standards suggest that the employer and employees work together to create meaningful performance standards that help foster greater productivity.
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Summary
When there are formal processes and procedures,
When there are professional standards, and When you work with employees to increase
each others’ success - You can have the two effective practices to
Managing Smart.Managing Smart.
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Thank you!For more information -
Warren J. RutherfordOwnerThe Executive Suite129 Airport RoadHyannis, MA 02601wjr@theexecutivesuite.comwww.theexecutivesuite.com508-778-7700