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.

###

If you enjoyed this post, please consider subscribing to Forte Consulting RSS Feed. Copyright 2011 Liisa Pursiheimo-Marcks, all rights reserved. SVPGMGDX8TEC

The Peter Principle: Is your organization run by incompetent people?

The Peter Principle was developed by Dr. Laurence J. Peter and Raymond Hull in 1969, and asserts that “in a hierarchy every employee tends to rise to their level of incompetence”. In other words, according to this principle, organizations keep promoting employees until they reach their level of incompetence. What are ways to avoid the Peter Principle creeping into your organization?

Everyone in Human Resources is familiar with another principle: “Past performance is the best predictor of future performance.” This is a good rule of thumb, as long as the job role and the environment are not changing significantly. Put your star sales producer into a sales manager position and you might be up for a surprise. Your best leader in solid growth years might not be your go-to person in a turnaround crisis.

So what are your tools to make sure you have competent people in every position? First of all, be clear of what competencies are required for success in each job. When you promote internally, you should be just as specific and demanding as hiring externally.

Second, the 9-box assessment is a wonderfully simple way to discuss among the management, which employees have reached their limit and which ones have a great journey ahead. A 9-box grid categorizes employees based on their current performance (low-medium-high) and their future potential (low-medium-high). Based on these two dimensions, the organization can design targeted development programs for them.

Third, promote learning agility as a competency across your organization. Select employees that are eager to learn and try new things. Promote a culture that is open to feedback and change. Encourage everyone to learn from mistakes instead of looking for someone to blame. This creates an employee base that is less likely to get stuck in their level of development.

Fourth, create talent processes that systematically push new talent upwards. Define key positions and what type of competencies and experience they require. Slate high performers and high potentials for the positions, and intentionally create experiences they need to gain. Let them test their skills before they have to step up. Coach and mentor them until they are ready to move. When it’s time for promotion, they have already proven their competence. The Peter Principle can go and hover above some another organization.

If you need help with 9-box assessment or high potential development plans, contact Liisa Pursiheimo-Marcks at liisa@forteconsulting.biz or at 512-484 8263.

###

If you enjoyed this post, please consider subscribing to Forte Consulting RSS Feed. Copyright 2010 Liisa Pursiheimo-Marcks, all rights reserved. SVPGMGDX8TEC

How big of a chunk of your company’s talent is underutilized?

The CBS post-Super Bowl show Undercover Boss thrilled or further jaded over 38 million viewers. The Waste Management President and COO Larry O’Donnell spent five days on the ground learning the ropes of the basic operations from the first line employees. Who wouldn’t enjoy watching a corporate big wig scrubbing latrines?

The outcome of the show was that Mr. O’Donnell ordered some changes in the local practices and a task force to look into their productivity policies that seemed to override all other company values. Having worked side by side with five employees, he also ended up promoting three of them. Now, three out of five makes 60%. It took the company President to notice that 60% of the employees he met did not work to their fullest potential.

Waste Management has 45,000 employees. With O’Donnell’s quick sample, 60% of talent being underutilized would make 27,000 missed opportunities. Yikes! Something to talk about with Jay Romans, Senior Vice President, People.

When a company grows past 400-500 employees, the CEO can’t know every employee. The VP of HR can’t know every employee. It is time to put in place talent management mechanisms that ensure that the CEO’s eyes reach all the way to the front lines to recognize and move the right people to the right opportunities.

The selection process should reflect the qualities that make the company culture successful. Sometimes, the culture is not quite there yet, so the management must find the pockets of excellence, and start building the desired culture by replicating the top performers’ attitudes and aptitudes, starting with hiring.

With the talent already in the organization, it is important not to let it go stale. The company loses opportunities, the employees lose motivation. There must be a process in place that frequently checks where the opportunities are, and where opportunities can be created. You also must create visibility into the strengths and talents of your existing employees. How else can you match talent to opportunities? The market provides many options for skill inventory software, or better yet, integrated talent management software.

And even with the fanciest software, keep this age-old rule in mind: garbage in – garbage out. It applies even at Waste Management. If the managers and employees don’t take the talent management process seriously, your software is not worth a byte.

Managers a the key to spotting talent are the managers. If they are only interested in and rewarded for getting today’s tasks done, there will be no talent management. They must have the skills and confidence to have in-depth conversations with their employees about their motivations, strengths and career goals. The company culture must also promote resource development and allocation beyond one’s own turf.

Many employees don’t even realize that they have opportunities beyond their current position. With a supportive company culture and a manager who knows how to develop their skills and coach their careers, they can look beyond the dead-end job, even if the President doesn’t come for a visit.

###

If you enjoyed this post, please consider subscribing to Forte Consulting RSS Feed.

Copyright 2010 Liisa Pursiheimo-Marcks, all rights reserved.
SVPGMGDX8TEC