Assessing performance and potential

A typical tool for organizations to assess talent is the 9-box grid. One axis is performance, and the other axis is potential, choices being low-medium-high. It allows for a simple framework for categorizing talent so that differentiated actions and investment is possible. What is more difficult is to have a balanced and objective discussion to truly slot the existing talent into the right categories.

The performance axis is often based on the organization’s annual performance management process, and the low-medium-high categories align with the performance rating scale. To make investments in talent more meaningful, the expectation is that managers are challenged to use consistent performance standards, so that not every employee falls into one category. Another consideration is to make sure that performance is not only evaluated based on pure results, but also on behaviors: How the results were achieved. Otherwise the organization runs the risk that people who leave behind dead bodies to reach their goals are viewed as top performers – a recipe for becoming a morgue.

The Corporate Leadership Council has developed a simple model for assessing potential. It has three elements that need to be evaluated: Ability, engagement and aspiration.

Ability encompasses the inherent talent and the skills acquired in the employee. When assessing leaders, these often include business acumen, technical and functional expertise, and leadership skills. When assessing potential as part of ability it means looking at the learning agility of the employee: How fast can they grasp new and complex concepts? Are they able to take on stretch assignments and unfamiliar responsibilities? How far can they reach?

Engagement is another component of potential. Does this employee LOVE this organization? How dedicated are they? How high is the emotional attachment? We are looking for passion. Lukewarm employees will not go as far as champions.

The last element is aspiration. You cannot push a rope. The employee’s drive and ambition is a key determinant of where their career will take them. They will be asked for personal sacrifices from time to time. Relocation is often part of the career path. High potentials actively manage their own careers.

Based on trusted dialogues with employees and objective discussions among the leadership team, the 9-box exercise can give a good snapshot of the talent pool of the organization. The next step is to act on that information.

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Happiness at work

Positive psychology is gaining in popularity. No longer is it enough to find ways to cure mental illness, but psychologists are now researching ways to help people live more fulfilling lives. I wanted to dig in deeper to see what positive psychology has to say about happiness at work. Does happiness really matter for productivity? And if it does, what can we use from the current research that can be applied in today’s workplace?

The Gallup Management Journal Employee Engagement Survey shows a strong correlation between employee engagement and happiness. Happy employees are more equipped to handle change and new challenges. According to another Gallup poll, employees who considered themselves happy spent 80% of their work time on task, versus unhappy employees who only spent 40% of their time on task. Professor Teresa Amabile from Harvard Business School studies employee innovation and performance. Her research discovered that employees were more creative on the days when they were on a good mood.

To increase happiness, there are elements we can control and some that we can’t. Research suggests that some people are born to be sunnier personalities than others. But, even the grumpsters can increase their level of happiness by focusing on the controllable factors. Our level of fulfillment improves, when we find a greater purpose and focus in our daily activities, play to our strengths, learn and grow, and have meaningful relationships. A good workplace can contribute to these happiness drivers.

Purpose and meaning

Organizations that are able to communicate a greater purpose and create an emotional attachment with their employees can reach over 50% increase in discretionary effort. Organizational communications and employment branding do part of this, but the most critical role falls to the managers who create the link between the organizational goals and the day-to-day work.

Strengths and growth

Recognizing individual strengths and letting employees leverage them not only creates happiness, but is a wise investment for the company. The most intense level of happiness is experienced in Flow, where the level of challenge is highest and skills are stretched to meet it. Continuous learning and growth guarantees on-going opportunities to reach Flow.

Meaningful relationships

One of the strongest engagement drivers is to have a best friend at work. Human connections create a sense of purpose and belonging. Organizations should be cautious of evaluation and reward systems that incentivize individualism and internal competition. Cultures that nurture teamwork and service orientation are more likely to promote happiness and loyalty.

Last but not least, positive language by itself is a self fulfilling prophesy. When employees and managers pay attention to positive events, they are more likely to feel happy. Positive feedback, gratitude and recognition are small gestures that go a long way to promote happiness and productivity. What’s the downside?

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12 days of Christmas to employee engagement

Photo credit: Esa Pursiheimo

 

On the twelfth day of Christmas, my dream job gave to me…

Clear expectations

Tools, data, funding

Way to play my best

Praise and recognition

Good and caring boss

Mentoring and coaching

Mission I am proud of

Community of trust!

Teammates I look up to

Real friends at work

Encouragement

And a path to learn and grow

Seasons greetings to all my blog readers!

To recall the melody of the original song: 12 Days of Christmas

To recall the lyrics of the original song: 12 Days of Christmas

To refer to Gallup’s Q12 employee engagement survey questions.

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The buck stops at the top

Top team, are you ever frustrated with your managers and employee base? Perhaps you are not seeing enough initiative and enthusiasm? Sometimes you think you have a house full of whiners, and your managers are coddling them. What happened to all the problem solvers and folks who pulled overnighters just for the excitement of seeing that new product come out? Newsflash; this is all your own creation. You made this with your big and small decisions. You can also fix it.

Executive leadership is responsible for many things: the P&L, formulating strategy and executing it, creating a business model that makes sense and operations to support it. However, what may create the most sustainable competitive advantage is the company culture. Every organization has a culture. In some, it grows organically. In winning organizations, it is meticulously managed. Leadership knows that every decision and action it takes sends a message of what is important and what isn’t. If your managers are not holding your employees accountable, and you are not doing anything about it, the signal is clear: Accountability is not a high priority. The same applies to any aspect of culture: respect for diversity, talent, quality, customer focus, integrity… Inaction speaks just as loud as action.

If you feel you don’t have the right people on the bus, did you pick the right people in the first place? Are you clear about what you want? Do you compromise in your selection process? Do you have a rigorous process? Are you involved at all? Are you developing your current team? If you want an A team, you have to be willing to pay for an A team, and treat them like an A team. As a leader, it’s all about putting a stake in the ground. Lukewarm won’t get you anywhere.

Instead of wondering why your people are not excited, give them a reason to be excited. The best way to engage employees is to share a compelling vision and show them how they can contribute. They need to have a sense of purpose, meaningful work and growth opportunities, which is what your managers should provide. If they don’t know how, train them how. Create a sense of community.

Next time you get frustrated about your workforce, do something about it instead. Manage your culture – get real about your people.

Have you captured the hearts and minds of your new employees?

According to an Aberdeen report, the best-in-class companies that have a formal onboarding process improve their new employee engagement by an average of 31% and reduce their time-to-productivity by 24%. Engaged employees in turn are more likely to be top performers, and companies with an engaged workforce have higher profits. Onboarding is much more than a 2-hour session where the new hires fill out the mandatory HR forms.

With new technology, the best companies allow access to a new employee portal and important company and career information even before the start day.  If your company has not caught the tech wave yet, you can still think of ways to share information to affirm their decision to join your company. What can you tell about your culture, your history and your business that can get them excited about being part of your organization? Give details about your benefits upfront, so they can discuss them with their family before they make their final decisions.

Orientation should be a reflection of your company culture. Find a way to reflect your core values through stories, discussion and activities. Orientation doesn’t have to take place in one session either. Bazaarvoice, on the list of Austin’s Best Places to Work For, gives out a list of 55 items to explore during the first week of employment. The new hires are asked to find out from Finance how much cash Bazaarvoice has in the bank. They get to sit in meetings with Sales or executives. They may get to expense a tray of cookies to share with coworkers, or a dinner at a restaurant where Bazaarvoice has celebrated its history. As Bazaarvoice is obsessed with the culture fit, they offer $2000 for any new hire who realizes that they don’t belong and want to leave.

How many new employees have started their first week excited and found themselves rolling their thumbs because the computer hadn’t arrived, the password is not working, or the manager was traveling. This is the first impression you are creating. The logistics process must be rehearsed, until it is flawless. There must be a work plan for the new hire to get started, otherwise, delay the start date.

Engagement is formed in hearts and minds. You capture hearts when your employees feel pride in being part of your organization and create meaningful connections with their coworkers. You capture their minds when they understand the vision and purpose of your organization and how it ties to their role. Onboarding is a great place to start making headway into the hearts and minds of your new champions.

Share your experiences in onboarding: the good, the bad and the ugly!

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Talent management in high tech – Part 2: Management development, succession planning, culture

In the high tech industry, the manager’s role is impacted by how high the skill level of the workforce is. Close monitoring and supervising only alienates employees who are used to a more self directed style. Managers must balance between the need to develop their employees and get the deliverables out the door. Many managers get promoted from individual contributor roles and don’t necessarily have any formal education in management. However, having worked in a team based environment, almost every manager has had opportunities to lead a team without the reporting authority, which is a great way to gain leadership experience. Management and leadership development is an area where high tech companies invest their training dollars.

When it comes to grooming senior leaders, succession planning is a process that is typically in place only in larger high tech companies, although it is equally important for smaller companies, who may be even more vulnerable for gaps when a key contributor leaves the organization. Succession planning basically serves two purposes; It manages the risk and proactively prepares for having choices of good candidates when positions open. It also systematically clears the path for high performers who company wants to invest in. In high tech, where the right mix of domain expertise and functional knowledge is sometimes elusive, succession planning takes a hard look at the best talent for the long haul. As high tech companies go global fairly early, international assignments are not rare.

There is something distinct about the high tech culture. We see comics about the software engineers in their loafers and shorts. The high tech industry is certainly more casual than, say, the banking industry. The employees have come to expect a more comfortable setting, and for some it is quite important. Autonomy and low bureaucracy are sought after cultural dimensions. Heavy manuals, helicopter managers and long policies are not too welcome. In exchange for flexibility, the employees accept and sometimes expect a fast pace and long hours, especially around product releases. However, as the generational  mix changes, and the talent war and need for innovation force the companies to reach out to more diverse candidates, work/life balance is becoming a higher priority even in the high tech industry.

High turnover is not the hallmark problem of the high tech industry. Employees come to stay in the company, as long as they get challenged at work and the work environment stays positive. Engagement and productivity may be tougher nuts to crack. With high paying jobs, it is critical that the employees feel compelled to give their 100% at work. The high tech companies that find the key to the hearts and minds of their employees gain sustainable competitive advantage.

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Don’t be so sure your employees will stay forever

Gallup’s recent survey reveals that 70% of American employees are disengaged at work, 18% of them actively disengaged, in other words actively resisting company efforts and recruiting other employees on their side. The other 52% are going through the motions, not really excited about the vision of their employer. The recession has kept them from leaving, but as the economy is turning around, the grass is getting greener and fast.

Obviously, the key to retention is to have the basics in place:

• Opportunities to grow and learn.
• A supportive supervisor that provides clear expectations, feedback and coaching
• Good relationships with coworkers
• Clear and inspiring company vision that ties to daily work
• Recognition for good work
• Tools and resources to do a good job

Smart companies get their employee feedback on these elements frequently and act fast to correct any gaps. Depending on the size of your company, you can use focus groups, surveys or a combination of both. Good talent management processes, investment in management and leadership skills result in improved retention.

Short term, your first priority should be your actively engaged employees and high performers. Schedule ‘stay interviews’ with them to discuss what keeps them engaged, and to identify any potential obstacles that might turn into attrition triggers. Take time to share your appreciation for their contribution and energy. Be mindful that one of the typical mistakes managers make is to keep on piling more work on the star performers, because they keep delivering – until one day it’s just too much and they leave.

For the whole team, it is important to see a clear vision of a brighter future. They have been through some tough times, and other companies may seem more attractive just because they are a change of scene. Be a transformational leader and paint a picture they can all see. Set clear milestones they can believe in.

Pay special attention to growth opportunities. If you can’t afford training, you can certainly afford stretch assignments, coaching and mentoring. Talk about career aspirations beyond the grim today. Be creative.

Facilitate deeper connections at work. It doesn’t have to be an expensive party. Maybe you will take some time in the beginning your team meetings to talk about some unique details about each person you didn’t know before. Start by sharing something about yourself. Close work relationships improve retention and engagement.

What other things have you done to keep your employees?

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Stressed out organizations

We are living in stressful times. Numerous companies have been forced to cut back their operations and workforce, some had to do it more than once. Every time there is a change initiative in a company, it puts extra stress on the organization. When there is a change like a workforce reduction, it is even a greater challenge to manage the organization without impacting the morale and the productivity of the remaining employee population.

There is a test called The Holmes stress point test. The theory is that certain life events accumulate stress in an individual’s life, and there are only so many stressful events one can take in one year without it starting to affect your health. Even positive events like vacation or family get-togethers accumulate a few stress points.

Organizations can also accumulate stress points. Together as a productive workforce, employees can only witness so many layoffs and reorgs before starting to feel change fatigue.

Stress can be productive, when the amount of tension is exciting, and the person feels that the circumstances are within his or her control. Too little action can lead to boredom and be a source of stress. People thrive on just the right amount of challenge. However, when too many things are thrown at us, that’s when it stops being fun.

The only thing constant is change. Companies don’t often have a choice when they have to make tough choices. But they do have a choice how to handle the change. Stress emerges when we feel we are not in control. Companies can help their employees at least a little bit with this:

Information increases control

Give as much heads-up as you can. Provide all the details and make them easily available. Overcommunicate. Use different communication methods to catch all the employees – don’t trust that all of them read e-mail. It’s better to have them fed up with your messages than confused and suspicious about a lack of them.

Competence increases control

If the change you are introducing impacts roles and responsibilities, processes or systems, make sure that everyone gets training and instructions to learn the ropes. Time the training with the implementation of the change, so they are ready to apply immediately. Provide different methods of learning, starting from quick one-pagers to more in-depth training.

Participation increases control

Instead of dictating all the changes, have your team participate in the important decisions. In layoffs, the division of work among those who are left would make sense to talk through with the whole team.

Reframe

Help your team see the future. Let them see their role beyond today, when job security is so fleeting. Make a continuous commitment to their development. Continue to think long term and articulate clearly what it takes to see it through the tough times.

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How to get a raise

2009 was a year we want to forget. Adjusted for inflation, total compensation in the USA fell by almost 1.3 percent. 2010 looks a bit better, but not much: a salary increase forecast conducted by The Conference Board projects modest budgets of 2.8%, barely enough to match the inflation rate. In this environment, what can you do to get that coveted raise? There are no silver bullets, but the answer lies in knowing the process, studying the criteria and applying self awareness.

There are different approaches to compensation strategies in organizations, such as flat inflation adjustments, seniority systems, competency based increases, but performance based pay is the king. It makes sense; the best performers get the best compensation. In this year’s case, the performance based companies will take their 2.8% increase budget and try to divide it so that low performers will get nothing, solid performers will get a little bit, so that there is some extra money accumulated to give a more handsome reward for the star performers. It sounds straightforward, but many complain that they are not being evaluated fairly. Herein lies the challenge: 90% of employees feel that their performance is above average. So, how do you know if you REALLY are above average and deserve the key to the treasure chest?

If your company is in a mature stage, it has clearly defined standards for different performance levels. These would describe how a top performer behaves versus a solid performer, and what constitutes performance below expectations. Sometimes, you can dig in further and find the listed company leadership values. If you can’t find any published criteria, here are some generic tips how to distinguish whether you are a true top performer vs. a solid performer:

• Top performers are part of a solution. It’s not that they don’t see problems or are yes-men. When they see a problem, instead of just identifying the issue, they think of possible solutions and volunteer to be involved in implementing them.
• Top performers are proactive. Instead of just doing a good job at fulfilling requests and completing goals, top performers clearly see the overall strategy and purpose of the company, and jump at opportunities to do things beyond their current tasks, as long as they are aligned with the current priorities.
• Top performers are change agents. In new initiatives, top performers not only go to training and follow the new rules, they embrace the change vision and evangelize the cause. If there are issues, they find workarounds instead of just pointing them out.
• Top performers are continuous learners. They ask for feedback and act on it. When they go to training, they are engaged. When they get back to work, they share what they learned with the team and apply the new skills on the job.

Just as a word of caution, here’s a tell-tale sign how to recognize if you might be a low performer: you consume a lot of your supervisor’s or HR’s time. Unless your time with your manager is proposing ideas that you are volunteering to implement, you are taking time away from productivity. The only other exception may be if you are reporting illegal or unethical activities; that is your right.

Get savvy about your company’s performance management and compensation processes. Know the criteria for decisions. Find out about the schedule and decision points. For example, once the merit increases have been approved by senior management, your chances of changing your manager’s decision are slim. Your manager and HR are your best sources of information. Use the processes to your advantage and don’t be afraid of them. Document your performance throughout the year and make sure that your manager, the next level management and HR are aware of your accomplishments. Network internally so that the decision makers can connect a name to a face.

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If you are a manager, don’t let the rewards planning time to go to waste. With the little budget that you have, make it count:

• Make sure there are no surprises. Your performers should know where they stand based on the informal feedback you give throughout the year.
• Be as transparent as you can be about the guidelines and how the compensation decisions are made. Clear expectations upfront set the stage for frank discussions.
• Make sure to celebrate the successes with your top performers and show how much you value them. The reward dialogue with them is a great opportunity to do so.
• Don’t forget to share how much you value your solid performers. Show them what it takes to be a top performer.
• Don’t cop out with your low performers. They should not be surprised with what’s in store for them.
• Don’t forget that compensation can only be a dissatisfier. Leading with purpose, giving feedback and developing your employees ultimately drive their engagement.

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Copyright 2010 Liisa Pursiheimo-Marcks, all rights reserved.
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Do you LOVE your job? Rediscovering passion at work.

What keeps puzzling me is how some people are passionate about their work and some are not. Look at the healthcare workers who dropped everything to go and help the victims in Haiti. There are scientists who spend nights at their labs to find a new solution to our energy crisis and Olympic athletes who sacrifice their normal youth for one chance to be number one. But these jobs are so alluring and have a higher purpose, we say. But what about the lady at my grocery store who packs my purchases faster than anyone else? She sorts them by kind to make it easier to unpack, and does all this with a smile. You can tell she is proud of her work. And I know software developers who love coding so much they take their laptops to bed. There are also doctors, scientists, media personalities and athletes who are not passionate about what they do. My claim is that it’s not about the job; it’s something else.

In the old days, we used to have artisans and craftsmen, who learned their profession through apprenticeship and years of practice. They even assumed their last names based on their trade. They marked their work with their initials and made sure it was well done. In the age of mass production and standardization, employees can still carry the mark of ownership and pride to their work. This is a personal choice. You can be today’s craftsman of your own trade.

We also have our natural skills and talents. Some of them are more obvious and transferable to a career than others. The greatest gift parents can do for their children is to let them explore their gifts and interests and guide them to the right path, not necessarily the one they had in mind in the first place. If we get to do something that comes easy for us, the passion follows. Maybe it’s not the whole job, but a part of your job.

When we talk about a calling, it has to do with making a difference. If I work for a charitable organization or an emergency room, the impact is easy to see. However, every organization is necessary and has a purpose in its own way. Find out how your company’s products are used, how customers experience the solutions, and what is needed to strive towards the company’s vision. Make sure you see the connection between your line of work and why your company exists. Then decide to be the best that you can be.

The most intense moments of recorded happiness are experienced at work during flow. When we set challenging goals for ourselves, avoid interruptions and give our best, our chances to get into the flow increase. That is passion. It can happen in any job.

In today’s economy, it may sound a bit arbitrary to talk about passion. Those who don’t have a job feel stuck and forced to take whichever job they may get. Those who are already in a rut are painted in a corner and can’t leave in the fear of not finding a more fulfilling position. Even in this situation, job passion can be achieved. Make a long term plan to get to your final destination that matches your natural gifts and the work environment you desire. In the meanwhile, create opportunities to get into the flow and take pride in whatever you do in your current trade.

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