Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
SlideShare a Scribd company logo
PERFORMANCE LEADERSHIP
       I.C.A.N.S.



 Leading People for Greater
       Performance

            2011
The top challenges for leaders in 2011…

    1. Excellence in execution
    2. Improvements to
       profitability
    3. Engaging workforce
Canada shows a lack of urgency
and leadership in resolving their
productivity and competitiveness
              issues.
The Result:
Our Objective Today

Translating Potential to Performance
The Role of Leaders
Execution remains
         the top challenge for
           all organizational
                 leaders.

“Key elements of Canada’s history
and industrial structure may have
 nurtured a complacent business
             culture.”
           Don Drummond, TD Bank
Productivity is often understood to be
  working harder or working longer.


 “Nothing can be farther from the truth,
it’s deriving more output from the same
       amount of time and effort.”
              Don Drummond, TD Bank
Where is performance going now?
Approximately 78% of
execution losses are due to
     issues of people
       performance.

  How can organizations
support people to perform
at higher levels to execute
   against the strategy?
Organizations achieve 63%
of their potential
performance!

HBR Study 2009
Execution is more important than
strategy – 85% of bottom line results
 are due to people performance via
  execution than the strategy itself.
The leader who understands how
to maximize return on execution
depends on an awareness of the
strengths of the team’s talent in
 order to execute the game plan.
The levers to increase the return
   on execution are business
     alignment and people
         performance.
Define the strategic
      drivers

 What are the performance
elements that if done better
   would most impact the
  execution of the strategy
   (positions or actions).
Know Your People

 The greater the leader’s
      insight into the
performance capability of
 the team (and individual
members) the more likely
 an increase in execution
         will occur.
People Performance
The performance leadership framework
   evaluates the three fundamental
   elements of team/organizational
            performance:
                      The Leadership
                        alignment




      The Strategic                The Productive
         Focus                        synergy
The Execution Advantage

The productivity economy will reward
  “do it smarter” organizations that
    build a better business model.

  Smart organizations will increase
their return on execution by focusing
 on drivers to achieve alignment and
          productive synergy.
The Performance
          Leader
Where do you
focus to be an
   effective
 performance
    leader?
“Only when you know yourself and operate
  from your strengths can you achieve true
                excellence as a manager.”

                            Peter Drucker
What do people need to be successful
in their new role as performance-based
leaders?

“Help me understand what success is going
to look like in my new role, show me with
examples, help me think differently so I can
apply these things to the development of my
people and the appropriate influencing of the
organization.”
ICANS 2011
Skills most needed for performance
leaders:

•   Self-awareness and Emotional Intelligence
•   Vision and Strategy
•   Communication
•   Tactical Management
•   Leading Others 3.0 – coaching, delegating,
    and feedback
The three steps to developing individual
           operational leadership:


                   Focus          • Tactical
• Individual                        - Know
                • Strategic
 – Know                             What, Whe
                  – Know
 Yourself                           n and How
                  Where &
                  Who
 Clarity                               Follow
                                      Through
Becoming a
Performance Leader
Organizational strategy is a
learning process that includes
five elements:

    1.   Assessing where we are
    2.   Understanding who we are and
         where we want to go
    3.   Learning how to get there
    4.   Making the journey
    5.   Checking progress
Leaders display performance
leadership when they think, act, and
 influence in ways that promote the
 sustainable competitive advantage
         of the organization.
Only 27% of organizations
integrate strategy and tactics.

  Benchmarking Solutions Study
Leaders need to focus on the strategic
 drivers of the organization …

  •   The relatively few determinants of
      sustainable competitive advantage for a
      particular organization in a particular industry
      or environment.
Most organizations have 3 to 5
strategic drivers at any point in
              time.

 Drivers can change – or the
relative emphasis – over time.
Business strategy is the pattern
of choices an organization makes
    to sustainable competitive
            advantage.

   Leadership strategy describes the
 organizational and human capabilities
 needed to fulfill the business strategy
              effectively.
Strategic Thinking
Strategic thinking revolves
around the ability of a leader to
 help people make sense of the
    world around them – the
challenges they collectively face
  and how they will face them
            together.
Strategic Acting
Strategic acting is committing
   resources to build sustainable
      competitive advantage.

Not every action is strategic – it is critical to
       apply actions that will impact the
     strategic drivers of the organization.
Strategic decisions always involve
           uncertainty …

The key is not to make quick decisions but
          to make timely decisions.
Without strategic clarity and focus it is
  nearly impossible to make sound
          tactical decisions.
Strategic Influencing
Forging relationships inside and outside
  the organization, inviting others to the
     process, building and sustaining
   momentum, and purposefully using
   organizational systems and culture.
Influence must be used in all
     directions … up to senior
executives, laterally to peers, down
     to reports, and outside to
   stakeholders and customers.
Key strategic influencing tactics…

        -Influence others by involving
         them in the process
           - Create common
             understanding, create
             champions, demonstrate others are
             valued
Key strategic influencing tactics…

        -Influence others by connecting
         on an emotional level
           - Learn what is important to others
           - Use the power of language
           - Connect to aspirations
Developing Performance
           Leadership:

• Assessing where you are, to
• Understand who you are and where you
  want to go, to
• Learn how to get there, to
• Make the journey, and
• Check your progress
The Evolution of
       Strategic
   Management
Strategy arose as a managerial
    discipline in the 1960s.
Models were
 developed to define
      strategy.

 Boston Consulting Group and
McKinsey & Company were key
 in developing frameworks to
       explain strategy.
The Definition of Strategy:

An integrated set of actions designed
to create a sustainable advantage over
competitors.
The Evolution of Strategic
Management – four phases …
Planning routinely progresses through four
    discrete phases of development.

At each phase, a company adopts attitudes
and gains capabilities needed in the phases
                 to come.
Phase One

       Financial Planning
 Annual budgeting process to forecast
revenue, costs, and capital needs over the next year.
Phase Two

Forecast-based Planning
  Extend the financial budgeting beyond the
 one-year time horizon
 Start using trend analysis, regression
 models, and simulation models
Phase Three

   Externally Oriented
         Planning
 Issues orientation – responsibility to lay out
  the key issues facing the organization
 Attention is shifted externally to
  customers, suppliers, and competitors.

 Resource allocation becomes dynamic and
  plans are adaptive

 Portfolio analysis is used to focus on
  competitive attractiveness and strengths
Phase Four

    Strategic Management
    Planning techniques are cascaded throughout
     the organization and strategic thinking is linked to
     operational decision making
 Discussions are defined by tomorrow’s
    strategic issues rather than today’s
          organizational structure

 Systems are in place to negotiate trade-
  offs, review progress, and motivate and
             reward performance
The Performance
            Edge
Strategy for a Bigger
               Future
For achievers and teams, the
      struggle is focus.
The Dip Between Potential and
        Performance
How do we bridge the gap between
   potential and performance?
ICANS 2011
Strategy is the North Star that
drives action and performance.
Strategy …

•   Builds prepared minds
•   Provides a framework for effective
    decision-making
•   Acts as a catalyst for team engagement
STRATEGY is the real
competitive advantage.
Most individuals and teams
     don’t do strategy well:

• Only 8% of strategies achieve results
  as planned
• 37% of strategies fail outright
• Teams assess leaders as 69%
  effective at performing against plans
Why is strategy so difficult?
It is human nature to talk about
     the future and then move
  directly to short-term tactics.

       We skip strategy!
Without strategy, we become
       distracted by…

 • Shiny Object Syndrome
   • Commitment Creep
The results:

• The short term takes over
• The pace is accelerated
• Work is reactive rather than
  proactive
• We are tactical not strategic
Defining Strategy:
The plan that a team takes to differentiate itself
positively from the competition using its strengths
 to provide value to satisfy customer needs now
                 and in the future.
Strategy involves:
• Clear, concise and measurable statement of 3-
  5 objectives
• Realistic assessment of key factors guiding
  team actions
• Description of key approaches used to realize
  results
We need to resist the urge to hit
     the ground running.
The Strategy Perspective:
Bridging the Performance Gap
     Diagnose before the cure
The Strategy Triangle:
     Working the Sweet Spot
Understand the interaction of the three key
 influencers on your performance … your
 team, your clients, and your competitors.
The Strategic Sweet Spot

The strategic sweet spot of a company is
where it meets customers’ needs in a way
that rivals can’t, given the context in which
it competes.




                CONTEXT
            (Technology, Industry
      demographics, regulation, and so on)




COMPETITORS’                   CUSTOMERS’
   offerings                       needs



                           Sweet
                            Spot


               COMPANY’S
                capabilities
The Strategic Drivers:
  The Art of Focus
Mindpower over manpower.
Start with the end in mind and
clarify your results – then work
              back.
Focus on five key strategies – gives
  a great feeling of motivation for
             everyone.
The Performance Scorecard:
  Measuring for Success

 “What gets measured gets
          better”
The Performance Scorecard is an
 instrument to navigate your future
 success, and a means of effective
   communication and motivation.

    You link cause and effect.
The Strategic Roadmap

A two-page summary of your
         strategy.
The solution to connect
potential to performance is to
    proactively set up the
  environment for success.
The Strategic Roadmap
The Performance Scorecard

 Critical to your success.
The benefits:

•   Create a winning team
•   Sharpen your client focus
•   Add value
•   Consistent and coordinated action
ICANS 2011
The Performance Edge:

Mindset for progress not perfection.

Focus strategically to achieve best
             results.
Creating A Vision
ICANS 2011
ICANS 2011
ICANS 2011
ICANS 2011
ICANS 2011
ICANS 2011
A strong vision is correlated with:
ICANS 2011
•
•
•
•
•
ICANS 2011
•
•
•
ICANS 2011
ICANS 2011
•




    •
•

•
ICANS 2011
•
ICANS 2011
ICANS 2011
ICANS 2011
ICANS 2011
•
•
ICANS 2011
ICANS 2011
ICANS 2011
ICANS 2011
•

•
ICANS 2011
ICANS 2011
ICANS 2011
ICANS 2011
ICANS 2011
ICANS 2011
ICANS 2011
ICANS 2011
ICANS 2011
ICANS 2011
Organizational
  Performance
Organizations face a
   daunting and seemingly
  contradictory set of goals:

• Provide a differentiated client
  experience at lower costs

• Generate significant growth while
  managing the bottom line
Organizations face a
   daunting and seemingly
  contradictory set of goals:

• Use technology for greater
  efficiency without losing personal
  client connection

• Standardize and … customize
The Common Element:

People – people are more than
ever a source of critical skill and
knowledge as well as the
foundation for sustainable
competitive advantage.
The Global Engagement Gap

   Where does Canada stand?
          7%

                23%                Engaged
    25%
                                   Enrolled
               45%                 Disenchated
                                   Disengaged


                Source: Towers Perrin (2009)
The engagement gap can be defined
              as:

     the difference between the
 discretionary effort that employers
need for competitive advantage and
employers’ ability to elicit this effort
 from a significant portion of their
              workforce.
Workforce Engagement is a Normal
           Distribution
The Economics of
         Engagement
            Part 1
 Improving the engagement – and in
    turn the performance – of an
    employee has the potential to
increase overall productivity by up to
           23% on average.

                        Source: Cascio (2009)
The Economics of
      Engagement
         Part 2
   Approximately 68% of your
 employees have the potential to
increase overall engagement and
      leverage productivity.

                    Source: Cascio (2009)
The Economics of
        Engagement
           Part 3
The key question is not which talent
  group has the greatest value but
rather in which talent group would a
  change in performance variation
     have the greatest impact?
The Economics of
      Engagement
         Part 4
Performance varies across jobs.

• The nature and scope of the
  job
• The relative value of
  variations in performance of
  the job
The Economics of Engagement
            Part 5
    Potential engagement / productivity
    enhancement is position dependent

 Low complexity position … 15% boost
 Moderate complexity position … 25% boost
 High complexity position … 46% boost

                               Source: Cascio (2009)
The Economics of Engagement


    What are the high complexity
 positions in your organization that
can be most highly leveraged with an
increase in engagement to a boost in
             productivity?
The Economics of Engagement

 Invest in positions where the value of
performance variance is the highest and
    the organization gains the most
            strategic return.

    Find the most pivotal position.
Leaders play a pivotal role in the
       engagement equation:

 The need for effective leadership at
  the top
 The need for customizing the
  culture and work environment to
  support employee engagement
 Putting employees under the same
  microscope as customers to take
  actions
Effective                                                           Long-Term
             Drive    Employee      Enables   Drive    Customer
                                                                     Profitability
Management                                            Satisfaction
                     Satisfaction
 Practices                                                           and Growth
Continued business productivity
    growth today depends on
closing the engagement gap and
  maximizing employee input.
How Engagement Affects Financial
         Performance




             Source: Towers Perrin (2009)
Source: Towers Perrin (2009)



       How
   engagement
affects individual
 performance …
How Employees Rate Leaders on Key
      Engagement Supports




                  Source: Towers Perrin (2009)
The Leadership Divide

Many senior leaders began their
careers in specific professional /
  technical positions with key
  analytical and rational skills.

Empathy, communication, and
gaining perspective may not be
   key strengths even now.
The Five Steps

1. Start with the end in mind
2. Specify the skills needed
3. Develop the right skills the
   right way
4. Support the transition of pivot
   positions
5. Engage and inspire people to
   meet business needs
The Pivotal Investment


Overall workforce engagement can
be increased with the greatest
leverage through the right
investment – leaders are the critical
supporters needed for this
investment.
The Pivotal Investment

To move the productivity curve
         outward …


   “An investment in
knowledge pays the best
       interest.”
        Benjamin Franklin
ICANS 2011
People Performance
People Performance
 The leader’s ability to measure and
manage the team’s (and individual’s)
instinctive approach to the drivers of
   the strategy will close the gap.
The Performance Process
                                             Productive
                                               Action

 Motivation


                                 Reason
              Instincts   Will




Affective          Conative      Cognitive
The Five-Factor Framework™:
   Improving Execution through
        People Performance

1. Define the strategic drivers
2. Measure the instinctive leadership
   approach
3. Measure & assess the instinctive culture to
   support the strategy and the
   organizational culture
4. Assess the organizational instinctive
   performance map
5. Identify and close gaps
Define the strategic
      drivers

 What are the performance
elements that if done better
   would most impact the
  execution of the strategy
   (positions or actions).
Measure
     the
  leader’s
instinctive
 approach
Measure the instinctive
   strategy culture
Measure the instinctive
organizational culture
Measure the instinctive
    strategy and
organizational culture
Assess the organizational
 instinctive performance
           map
Identify and close instinctive
     performance gaps
Insights and Actions:
Thank You!
                   For More Information,
                    Please contact us at:
(902) 425 – 0467 or email GetResults@BluteauDeVenney.com

More Related Content

ICANS 2011

  • 1. PERFORMANCE LEADERSHIP I.C.A.N.S. Leading People for Greater Performance 2011
  • 2. The top challenges for leaders in 2011… 1. Excellence in execution 2. Improvements to profitability 3. Engaging workforce
  • 3. Canada shows a lack of urgency and leadership in resolving their productivity and competitiveness issues.
  • 5. Our Objective Today Translating Potential to Performance
  • 6. The Role of Leaders
  • 7. Execution remains the top challenge for all organizational leaders. “Key elements of Canada’s history and industrial structure may have nurtured a complacent business culture.” Don Drummond, TD Bank
  • 8. Productivity is often understood to be working harder or working longer. “Nothing can be farther from the truth, it’s deriving more output from the same amount of time and effort.” Don Drummond, TD Bank
  • 9. Where is performance going now?
  • 10. Approximately 78% of execution losses are due to issues of people performance. How can organizations support people to perform at higher levels to execute against the strategy?
  • 11. Organizations achieve 63% of their potential performance! HBR Study 2009
  • 12. Execution is more important than strategy – 85% of bottom line results are due to people performance via execution than the strategy itself.
  • 13. The leader who understands how to maximize return on execution depends on an awareness of the strengths of the team’s talent in order to execute the game plan.
  • 14. The levers to increase the return on execution are business alignment and people performance.
  • 15. Define the strategic drivers What are the performance elements that if done better would most impact the execution of the strategy (positions or actions).
  • 16. Know Your People The greater the leader’s insight into the performance capability of the team (and individual members) the more likely an increase in execution will occur.
  • 18. The performance leadership framework evaluates the three fundamental elements of team/organizational performance: The Leadership alignment The Strategic The Productive Focus synergy
  • 19. The Execution Advantage The productivity economy will reward “do it smarter” organizations that build a better business model. Smart organizations will increase their return on execution by focusing on drivers to achieve alignment and productive synergy.
  • 20. The Performance Leader
  • 21. Where do you focus to be an effective performance leader?
  • 22. “Only when you know yourself and operate from your strengths can you achieve true excellence as a manager.” Peter Drucker
  • 23. What do people need to be successful in their new role as performance-based leaders? “Help me understand what success is going to look like in my new role, show me with examples, help me think differently so I can apply these things to the development of my people and the appropriate influencing of the organization.”
  • 25. Skills most needed for performance leaders: • Self-awareness and Emotional Intelligence • Vision and Strategy • Communication • Tactical Management • Leading Others 3.0 – coaching, delegating, and feedback
  • 26. The three steps to developing individual operational leadership: Focus • Tactical • Individual - Know • Strategic – Know What, Whe – Know Yourself n and How Where & Who Clarity Follow Through
  • 28. Organizational strategy is a learning process that includes five elements: 1. Assessing where we are 2. Understanding who we are and where we want to go 3. Learning how to get there 4. Making the journey 5. Checking progress
  • 29. Leaders display performance leadership when they think, act, and influence in ways that promote the sustainable competitive advantage of the organization.
  • 30. Only 27% of organizations integrate strategy and tactics. Benchmarking Solutions Study
  • 31. Leaders need to focus on the strategic drivers of the organization … • The relatively few determinants of sustainable competitive advantage for a particular organization in a particular industry or environment.
  • 32. Most organizations have 3 to 5 strategic drivers at any point in time. Drivers can change – or the relative emphasis – over time.
  • 33. Business strategy is the pattern of choices an organization makes to sustainable competitive advantage. Leadership strategy describes the organizational and human capabilities needed to fulfill the business strategy effectively.
  • 35. Strategic thinking revolves around the ability of a leader to help people make sense of the world around them – the challenges they collectively face and how they will face them together.
  • 37. Strategic acting is committing resources to build sustainable competitive advantage. Not every action is strategic – it is critical to apply actions that will impact the strategic drivers of the organization.
  • 38. Strategic decisions always involve uncertainty … The key is not to make quick decisions but to make timely decisions.
  • 39. Without strategic clarity and focus it is nearly impossible to make sound tactical decisions.
  • 41. Forging relationships inside and outside the organization, inviting others to the process, building and sustaining momentum, and purposefully using organizational systems and culture.
  • 42. Influence must be used in all directions … up to senior executives, laterally to peers, down to reports, and outside to stakeholders and customers.
  • 43. Key strategic influencing tactics… -Influence others by involving them in the process - Create common understanding, create champions, demonstrate others are valued
  • 44. Key strategic influencing tactics… -Influence others by connecting on an emotional level - Learn what is important to others - Use the power of language - Connect to aspirations
  • 45. Developing Performance Leadership: • Assessing where you are, to • Understand who you are and where you want to go, to • Learn how to get there, to • Make the journey, and • Check your progress
  • 46. The Evolution of Strategic Management
  • 47. Strategy arose as a managerial discipline in the 1960s.
  • 48. Models were developed to define strategy. Boston Consulting Group and McKinsey & Company were key in developing frameworks to explain strategy.
  • 49. The Definition of Strategy: An integrated set of actions designed to create a sustainable advantage over competitors.
  • 50. The Evolution of Strategic Management – four phases …
  • 51. Planning routinely progresses through four discrete phases of development. At each phase, a company adopts attitudes and gains capabilities needed in the phases to come.
  • 52. Phase One Financial Planning  Annual budgeting process to forecast revenue, costs, and capital needs over the next year.
  • 53. Phase Two Forecast-based Planning  Extend the financial budgeting beyond the one-year time horizon Start using trend analysis, regression models, and simulation models
  • 54. Phase Three Externally Oriented Planning  Issues orientation – responsibility to lay out the key issues facing the organization
  • 55.  Attention is shifted externally to customers, suppliers, and competitors.  Resource allocation becomes dynamic and plans are adaptive  Portfolio analysis is used to focus on competitive attractiveness and strengths
  • 56. Phase Four Strategic Management  Planning techniques are cascaded throughout the organization and strategic thinking is linked to operational decision making
  • 57.  Discussions are defined by tomorrow’s strategic issues rather than today’s organizational structure  Systems are in place to negotiate trade- offs, review progress, and motivate and reward performance
  • 58. The Performance Edge Strategy for a Bigger Future
  • 59. For achievers and teams, the struggle is focus.
  • 60. The Dip Between Potential and Performance
  • 61. How do we bridge the gap between potential and performance?
  • 63. Strategy is the North Star that drives action and performance.
  • 64. Strategy … • Builds prepared minds • Provides a framework for effective decision-making • Acts as a catalyst for team engagement
  • 65. STRATEGY is the real competitive advantage.
  • 66. Most individuals and teams don’t do strategy well: • Only 8% of strategies achieve results as planned • 37% of strategies fail outright • Teams assess leaders as 69% effective at performing against plans
  • 67. Why is strategy so difficult?
  • 68. It is human nature to talk about the future and then move directly to short-term tactics. We skip strategy!
  • 69. Without strategy, we become distracted by… • Shiny Object Syndrome • Commitment Creep
  • 70. The results: • The short term takes over • The pace is accelerated • Work is reactive rather than proactive • We are tactical not strategic
  • 71. Defining Strategy: The plan that a team takes to differentiate itself positively from the competition using its strengths to provide value to satisfy customer needs now and in the future.
  • 72. Strategy involves: • Clear, concise and measurable statement of 3- 5 objectives • Realistic assessment of key factors guiding team actions • Description of key approaches used to realize results
  • 73. We need to resist the urge to hit the ground running.
  • 74. The Strategy Perspective: Bridging the Performance Gap Diagnose before the cure
  • 75. The Strategy Triangle: Working the Sweet Spot Understand the interaction of the three key influencers on your performance … your team, your clients, and your competitors.
  • 76. The Strategic Sweet Spot The strategic sweet spot of a company is where it meets customers’ needs in a way that rivals can’t, given the context in which it competes. CONTEXT (Technology, Industry demographics, regulation, and so on) COMPETITORS’ CUSTOMERS’ offerings needs Sweet Spot COMPANY’S capabilities
  • 77. The Strategic Drivers: The Art of Focus Mindpower over manpower.
  • 78. Start with the end in mind and clarify your results – then work back.
  • 79. Focus on five key strategies – gives a great feeling of motivation for everyone.
  • 80. The Performance Scorecard: Measuring for Success “What gets measured gets better”
  • 81. The Performance Scorecard is an instrument to navigate your future success, and a means of effective communication and motivation. You link cause and effect.
  • 82. The Strategic Roadmap A two-page summary of your strategy.
  • 83. The solution to connect potential to performance is to proactively set up the environment for success.
  • 84. The Strategic Roadmap The Performance Scorecard Critical to your success.
  • 85. The benefits: • Create a winning team • Sharpen your client focus • Add value • Consistent and coordinated action
  • 87. The Performance Edge: Mindset for progress not perfection. Focus strategically to achieve best results.
  • 95. A strong vision is correlated with:
  • 102.
  • 105.
  • 127. Organizations face a daunting and seemingly contradictory set of goals: • Provide a differentiated client experience at lower costs • Generate significant growth while managing the bottom line
  • 128. Organizations face a daunting and seemingly contradictory set of goals: • Use technology for greater efficiency without losing personal client connection • Standardize and … customize
  • 129. The Common Element: People – people are more than ever a source of critical skill and knowledge as well as the foundation for sustainable competitive advantage.
  • 130. The Global Engagement Gap Where does Canada stand? 7% 23% Engaged 25% Enrolled 45% Disenchated Disengaged Source: Towers Perrin (2009)
  • 131. The engagement gap can be defined as: the difference between the discretionary effort that employers need for competitive advantage and employers’ ability to elicit this effort from a significant portion of their workforce.
  • 132. Workforce Engagement is a Normal Distribution
  • 133. The Economics of Engagement Part 1 Improving the engagement – and in turn the performance – of an employee has the potential to increase overall productivity by up to 23% on average. Source: Cascio (2009)
  • 134. The Economics of Engagement Part 2 Approximately 68% of your employees have the potential to increase overall engagement and leverage productivity. Source: Cascio (2009)
  • 135. The Economics of Engagement Part 3 The key question is not which talent group has the greatest value but rather in which talent group would a change in performance variation have the greatest impact?
  • 136. The Economics of Engagement Part 4 Performance varies across jobs. • The nature and scope of the job • The relative value of variations in performance of the job
  • 137. The Economics of Engagement Part 5 Potential engagement / productivity enhancement is position dependent  Low complexity position … 15% boost  Moderate complexity position … 25% boost  High complexity position … 46% boost Source: Cascio (2009)
  • 138. The Economics of Engagement What are the high complexity positions in your organization that can be most highly leveraged with an increase in engagement to a boost in productivity?
  • 139. The Economics of Engagement Invest in positions where the value of performance variance is the highest and the organization gains the most strategic return. Find the most pivotal position.
  • 140. Leaders play a pivotal role in the engagement equation:  The need for effective leadership at the top  The need for customizing the culture and work environment to support employee engagement  Putting employees under the same microscope as customers to take actions
  • 141. Effective Long-Term Drive Employee Enables Drive Customer Profitability Management Satisfaction Satisfaction Practices and Growth
  • 142. Continued business productivity growth today depends on closing the engagement gap and maximizing employee input.
  • 143. How Engagement Affects Financial Performance Source: Towers Perrin (2009)
  • 144. Source: Towers Perrin (2009) How engagement affects individual performance …
  • 145. How Employees Rate Leaders on Key Engagement Supports Source: Towers Perrin (2009)
  • 146. The Leadership Divide Many senior leaders began their careers in specific professional / technical positions with key analytical and rational skills. Empathy, communication, and gaining perspective may not be key strengths even now.
  • 147. The Five Steps 1. Start with the end in mind 2. Specify the skills needed 3. Develop the right skills the right way 4. Support the transition of pivot positions 5. Engage and inspire people to meet business needs
  • 148. The Pivotal Investment Overall workforce engagement can be increased with the greatest leverage through the right investment – leaders are the critical supporters needed for this investment.
  • 149. The Pivotal Investment To move the productivity curve outward … “An investment in knowledge pays the best interest.” Benjamin Franklin
  • 152. People Performance The leader’s ability to measure and manage the team’s (and individual’s) instinctive approach to the drivers of the strategy will close the gap.
  • 153. The Performance Process Productive Action Motivation Reason Instincts Will Affective Conative Cognitive
  • 154. The Five-Factor Framework™: Improving Execution through People Performance 1. Define the strategic drivers 2. Measure the instinctive leadership approach 3. Measure & assess the instinctive culture to support the strategy and the organizational culture 4. Assess the organizational instinctive performance map 5. Identify and close gaps
  • 155. Define the strategic drivers What are the performance elements that if done better would most impact the execution of the strategy (positions or actions).
  • 156. Measure the leader’s instinctive approach
  • 157. Measure the instinctive strategy culture
  • 159. Measure the instinctive strategy and organizational culture
  • 160. Assess the organizational instinctive performance map
  • 161. Identify and close instinctive performance gaps
  • 163. Thank You! For More Information, Please contact us at: (902) 425 – 0467 or email GetResults@BluteauDeVenney.com