Are the right people on the plane

		Are the wrong people off the plane

		Are the right people in the right seats

Introduction: Chicago Change Partners position on Talent and Talent Management

Bench-Strength: The best and the rest

Post the Talent Assessment: Some kind of matrix enables an executive team to review all of the talent in an organization relative to present capability and to forecast into the future. Chicago Change Partners matrix looks like the following:

Other depictions are in the more common Nine Box; basically looking at Present and Future:

The basic point is that no matter how the data is portrayed, there are some basics about ‘people’ that transcend any approach.

What are the basics?

1^st: Job 1: Treat individuals with Respect –start with facing reality and being truthful-

Too much emphasis on differentiating talent pools may be bad for business. If all you are going to do is to have a good discussion and assess talent and stop—don’t do this.  The talent assessment process should not be taken to an extreme that discourages development, performance improvement, and teamwork. It is a starting point, not an ending place. It is important to emphasize that the process may give different attention to different talent pools and yet be fair. Fair treatment does not necessarily mean the same treatment.

• Your better performers are somewhat easy to identify. Everyone knows who the stars are—those individuals who consistently—no matter what the challenge—step up and step in and make the organization better, solve the issue and create a great deal of energy. Others flock to them for various reasons, want to work with them;
• Those in the middle—a decidedly tougher challenge: We have some ‘load-bearing’ walls who are the strength of the organization; and we surely do not want to de-motivate them—at the same time, everyone recognizes that to promote a particular solid individual to the next level would not work out; however, we anguish in telling them that going to the next level is not the best move for them or the organization;
• Your lowest rated individuals: Tough conversations are the norm if an organization is to grow and prosper. Individuals in certain positions are not up the task at hand; they did not create those conditions—they signed on for one type of challenge, but that challenge has changed. Thus, the organization and its needs have outstripped them. Sad, but true. It is clear that this is the case with many individuals. They know that they are not up to the task, but just do know what the future holds.

With those individuals of concern we have to ask—how did that happen?  The answer is quite clear—Management is accountable. Most likely with good intentions, with some individuals we have over-recruited, over-promoted, over-titled, over-paid those individuals. At the end of the day we have set them up for failure.  Good people, but we have mishandled them.

Even your lowest rated talent deserves the respect of the organization. Their dignity is essential to maintain no matter what action you take.

For these individuals to keep them in some of your key positions because management is either blinded, unwilling to act or acting out of altruism or an egalitarian point of view…really borders on an abdication of responsibility. If they have people reporting to him/her ask yourself…how would I feel I was a direct report to him/her?

Are we being fair to those individuals who are failing? In a word- no! Additionally, we are looking at one individual and not the fall out of the performance of that individual. One way of looking at this:

 

So, it is very clear that the issue goes beyond the individual—it pervasively affects the unit he/she manages and the results that they are able to achieve.

2^nd: You have completed the talent assessments in your unit—next steps…

Applying talent assessments to identify the most appropriate development focus is essential. Taking Change Leadership and a future --Talent Forecast together, a matrix enables an executive team to review all of the talent in an organization has at the present and future time,

It should not be used as a

• Rigid determination or career-limiting categorization.

 

 

It should provide a,  

• Graphic, data-based framework for management discussion of individual -development for all individuals reviewed. (and organizational )priorities

The team may concur on development plans appropriate for different managers, including accelerated assignments and development for some (along with higher rewards), and sustained recognition and development of others.

Some may require intensive attention: those who are at risk in their performance, or those who are key performers who might be vulnerable to attrition.  The matrix should be used to “spot check" the stewardship of talent.

3^rd: A particularly sticky issue: Forced Ranking is counterproductive:

Jack Welch made forced ranking of managers a prominent aspect of GE's culture, believing that continuous upgrading of talent was vital to improve organizational performance. Larry Bossidy, who left GE to head Allied Signal, then Honeywell), does not believe in that idea.

It is Chicago Change Partners position that there might be a place for it for time of a merger or acquisition.  There might be a place for it once in a while, but on an ongoing basis, NO. 

Overall, it does more against morale than it does for it. If you persuade managers of the importance of having good people, of evaluating and developing them, then that will happen without having to resort to forced ranking.

4^th: Managing the flow of talent. Retention is important in building a loyal, capable workforce -- and especially important for high performers and high potentials. But the reality is that a dynamic flow of talent in, up, over, and out of an organization is vital for talent management.

Managing this flow is a key management task, although managers often react to needs rather than anticipating and proactively addressing changes in talent supply and demand. A growing, developing enterprise has changing requirements, and hence must continuously assess whether talent is aligned with these requirements.

A balance between internal talent development and external recruitment is important -- and in the urge to upgrade talent, some executives have swung too far toward recruitment at the expense of development.

5^th: Recognize the development potential in everyone. Most managers

may be best-suited for continuous development and growth in their current roles, next-level roles, or roles that are expanded and redefined as business changes. This potential should be valued and respected. In the process of identifying and valuing high potentials, put safeguards in place so as not to denigrate others.

 

6^th: Labels are important: They are a short-hand to communications—and play a role in discussions of talent in an organization. Some people have issues with this—we can understand that.

 

7^th: High potential…because of its differing meaning is a relatively useless concept. You might have four people in a room and ask them for a definition—truly, there will be six different views. If your bench-strength is not adequate for the challenges and opportunities you have, come to the realization that it is because of lack of management’s attention to the issue that put you in that condition. So much for the sins of the last watch; the key is not to make that same mistake.

8^th: Use a wide range of talent management tools: to motivate, develop, and retain all talent. The assessment and development process, supplemented by succession planning, is essentially a demand-pull process satisfying the organization's talent requirements (versus supply-push, employee-driven career development). While management carefully identifies and prepares talent to meet the organization's anticipated future needs, it also provides systems to facilitate self-development and career management. Such resources as e-learning, workshops, tuition assistance, job posting, career planning and coaching assistance enable all individuals to pursue career development opportunities at their own initiative.

9^th: Establish clear expectations and keep communication open. Considerable angst among individuals stems from the apparent secrecy of the talent management process. If they do not understand the process or its purpose, it is only natural to make assumptions about it - that are rarely positive. Management should communicate openly about the talent management process: - why it is important, how it works, and what management expects to be the benefits for the company and for the participants. Discussions with individuals should be open, candid, and supportive. If the process is well-designed and effectively implemented, it will be seen as a fair process.

10^th: The folly of ‘tell vs. not to tell’: This is a foible that has been foisted on us—it is clear that individuals should always know ‘where they are’ and how they are viewed in the organization. To keep who is on the ‘list’ is such a misguided effort. We say that everyone is on the list…on a yearly basis we meet and put our collective thoughts together about the total management group—that is what our talent assessment process is.  The point is that everyone is assessed and then provided feedback on a periodic basis. Thus, everyone knows (or should know) where they are at all times.  

Endnotes

(1.) Michaels, E., Handfield-Jones, H. & Axelrod, B. (2001). The War for Talent (Boston: Harvard Business School Press).

(2.) Gladwell, M. (2002). "The Talent Myth," The New Yorker (July 22): 28 - 33.

(3.) Lombardo, M.M. & Eichinger, R.W. (2000). "High Potentials as High Learners," Human Resource Management (Winter): 321-329.

(4.) An example set of high potential criteria is available from the authors upon request.

(5.) First used at Pepsi several decades ago, the matrix has proven useful in inventorying talent and determining development priorities. For an excellent discussion of the use of the matrix, see M. M. Lombardo & R.W. Eichinger (2002), The Leadership Machine (Lominger).

(6.) Vogl, A.J. (2002). "The Way It Is," Across the Board (May-June): 31-37.

(7.) Gladwell, op cit.

(8.) Pfeffer, J. (2002). "The Talent War Is a Losing Battle," Strategy and Business (First Quarter); Pfeffer, J. (2001). "Fighting the War for Talent is Hazardous to Your Organization's Health," Organization Dynamics (Spring): 248-259.

1-1       Total Leadership Pipeline:

Answers the basic questions: What does the bench strength look like/do we have the talent we need to drive our strategic agenda?

What is this Report: This is the key entry report that summarizes the findings from the Talent Assessments—it provides a complete picture of your pipeline of talent. Additionally, as you navigate through the various elements of your pipeline it keeps discussions anchored;

Why this Report is important: This Chart provides the ‘big picture’; it provides a context and framework that allows you to drill down and drill through making various inquiries without getting stuck in the small details. This visual depiction is helpful in discussions with talent for a team that is anticipating any kind of action.  Maneuvering:

How to use this report: Understanding issues with this report: It is necessary to familiarize yourself with how to navigate in the cockpit; the more you are conversant with the talent in your organization the better you will be able to staff, deploy and retain your key talent.

What follows is a short demonstration of how to use the Dashboard; thus, you will see how you truly do have finger tip capability with the Leadership Pipeline Dashboard. We suggest that you anchor yourself with these steps;

Understanding some of the major navigational areas:

1^st: Filters: At the top of the Dashboard: Your filters allow you to analyze and understand your data at a depth that has not been available before.

The filters are pull-downs that allow you to configure the data in different ways: allowing you to inquire about certain issues: …these might be:

What part of the organization do you want to look at; or is it the total company: For a company/entity with several business units, each could be accessed by just pulling down the name of the sub-unit:

Based upon need the data could be portrayed with our Standard Box view or …if a company prefers…the Nine-Box View:

Special Considerations— Pivotal positions and Risk of losing:--each are pull-downs

Two major considerations that effect your ability to execute; your …

·         Pivotal positions that are ‘make or break’ could affect your competitive capability; additionally,

·         Risk of Losing: Again, if one is to lose a major talent it could affect your execution capability.

Key Measures: Again, we have pull-downs that can help you configure your analytics in many different and informative ways: The pull-down:

Functions: This will, of course change from company to company. The following is from the demonstration. Again, it provides a great deal of flexibility to view and understand your organization.

Diversity: Diversity is an important issue and to that end; one of the key filters is set up to quickly obtain a snap-shot view of this important issue; with it being one of the filters it allows analysis, overall; by unit, by function, by level, etc.

2^nd: Levels within the Organization: One has the ability to configure the data for the various levels of the organization; it could be the total pipeline; or the executive level, key -management, etc.

 

 

1-2  Leadership Coalition:

Answers the basic question: Do we have the leadership at the top---the coalition of leaders required/ a solid team to drive the agenda?

What is this Report: It is a picture of the top two levels in an organization. It could be a sub-unit or a function. The point is that one has to have leadership at the top; thus a coalition of leaders is essential for success.

Why this Report is important: Peter Drucker said that ‘if you get the top two levels in the organization ‘right’, then ‘everything else…gets right!”  This says that if the top of the house is truly driving change, then actions taken will be change oriented. But, to do this requires leaders to be compatible and of one mind to drive the change required. If you have a mixed coalition—you will get, at best, mixed results. Too much is at stake to tolerate less than a team that wants to ‘out-flank, out-maneuver’ the competition.

How to use this report: Understanding issues with this report:

Vitality of the team: One needs to look at the overall balance; As you can see there are some strong leaders (Game-Changers); some solid citizens and some who is not that effective (by-Standers). Not bad overall, but the two members of senior management could drag the performance of the team down;

Effects by the leadership team

A leadership team can lead to either a performance gain or a performance loss, what makes the difference? In general terms several factors are influential. Senior teams are more likely to be effective and provide the right direction to others—they must function as a team—there must be that coalition of leaders.

• Strategy and situation at this time: Some of the positions might be more important (at this time) than the others. For example, if the strategy was to enter a new market and the individual rated as a By-Standers is the SVP of Sales, the team could be in for trouble with that initiative.
• Effect of Lift and Drag: One should look at how much ‘lift’ you have---which you will from the Game-Changers, and conversely, ‘drag’ from the By-Standers. All positions on a team affect the other. In the modern organization everything is dependent upon your colleagues pulling their weight.
• Effects on Subordinates: One has to assess the downstream effects of the coalition of leadership that you have on the morale in the unit.

Bottom line: The Leadership Coalition at the top in many ways is the most influential factor in either success for failure of an organization.

 

1-3 Talent Forecast Chart:

Answers the basic question: Who is promotable at various levels in this organization?

What is this Report— It provides a visual depiction of talent at various levels in your organization and provides with a roadmap for staffing-- a total picture—with particular emphasis on who is promotable…and should be on your ‘short list’.

Why this Report is important: Your promotions should come from those deemed ‘promotable’. The placements should decidedly not come from someone who is misplaced or limited. Tragically, that will happen unless this picture is monitored and used. This is the front end picture for staffing; the actions taken are documented in Report 2.5 the Promotable Hit-Miss Report. Nothing communicates the values of an organization than who is placed in a position…or who is allowed to stay in a position.

How to use this report: Understanding issues with this report:

Considerations—what is at stake:

• Promotable talent* (the greens) This group should be the candidates to play larger roles; thus, if staffing they should be on your ‘short list’*Research shows that if the right person in the right job at a higher level…the value created is not 10-15%, but it can be 200-300%;    

• Hold in Place:  They generally are doing a solid job; however, if you take them out of their comfort zone they will have trouble stepping up, at this time—they can change, but we are talking about the time of assessment;

• Take Action**: (red) Action needs to be taken here, it appears that they will have trouble stepping up; thus, a larger role or promotion is out of the question.

   ** Research shows that these individuals can erode profitability and damage the organization > 40%  

 

 

1-4: Succession Coverage:

Answers the basic question(s): Who is a successor to this individual/and, do we have adequate back-ups for key positions?

What is this Report: The report provides a summary picture of the successors for key positions.

Why this Report is important: Certain positions, most likely the top two levels of an organization require that consideration be given to who could fill that position if a vacancy occurred. Additionally, in some industries it is necessary to project who could fill a plant manager’s role, in a grocery store chain…who would be the next store manager, district manager, etc.

A caveat with the whole issue of succession: Succession planning certainly has implications at the top of the organization; however, it can lose its position if an organization applies it too broadly. Of particular concern is when succession is one of the major focus in talent management. Asking a middle manager to engage in succession planning for his/her position is fraught with issues. Thus…it makes sense to think of successors at the top and then in certain key positions, such as district directors, plant managers, store managers. Those positions are corporate property and need to be treated that way.

How to use this report: Understanding issues with this report:

First of all…the report needs to be broken apart.

·         Part One: What you will see when you open the report, and

·         Part Two: What went into the Report…what needed to be defined to create the report?

Part One: What you will see:

Part Two: What went into preparing the Report…what needed to be defined to create the report?

To create the report requires that for an individual where there is a need for a successor that you source that person as  follows:

Definitions of terms used:

Future Successors: 1-2 Employees who would seem to be the most logical successor. If there is not a qualified candidate—do not list one. For the successors, also indicate present readiness to assume the position:

Readiness needs to be checked in terms of:

·         100%: Fully competent to step in and step up into that position

·          75%: Some development is required –there would be some growth, but they would be capable of producing solid expected results; and

·          50%: They could be successful, a stretch, but consider the following:

o   They will need a solid development plan;

o   What kind of team are they inheriting;  and

o   What caliber direct boss and can/will he or she spend enough time with that individual to assure success.

Emergency Step-In Candidate: Who could handle the position on a temporary basis –until the present incumbent returns or until the position is filled?

Pipeline Candidate: Someone who is not presently qualified, but who could develop the required competencies and experience to be a viable candidate in 3+ years;

 

 

1-5 Need to Move List:

Answers the basic question: Who do we need to move that are promotable/who needs to stay in place,  and who needs to move because they are in the wrong position?

What is this Report: A summary of individuals who could play a larger role and those that are solid , but we have put them in the wrong position…and need to recover to salvage them.

Why this Report is important: It basically helps us summarize moves that need to be made—provides a picture of what needs to be done with internal talent; some we want to advance—others we want to salvage.

How to use this report: Understanding issues with this report:

 

How to maneuver within the report:

In summary: Staying up with all the moving pieces is key to growing talent inside your organization. So many times, issues and moves get lost…’out of sight and out of mind’.

For administrators it might be elective; however, for individuals who have invested heavily in their career and are ambitious to make a larger contribution their careers and allegiance to the organization are at stake and risk. Many a very talented individual has walked out of organizations because of a lack of career growth. This report along with Need to Move Tracking and the Hit-Miss Report in section two are very important.

 

 

1-6: Diversity Pool

Answers the basic question: What does the diversity population we have look like?

What is this Report: This matrix is a summary of the population that we have that fit into the category of diversity. This is the analysis ---the MRI if you will. The information as to what is done to track the issue is in report 1-10: Diversity Pool Tracking.

Step one: Click on the Pull-Down for the Diversity population

Step two: Review the summary picture

Why this Report is important: Workplace diversity is a people issue, focused on the differences and similarities that people bring to an organization. As a concept, diversity is considered to be inclusive of everyone. In many ways, diversity initiatives complement non-discrimination compliance programs by creating the workplace environment and organizational culture for making differences work. Diversity is about learning from others who are not the same, about dignity and respect for all, and about creating workplace environments and practices that encourage learning from others and capture the advantage of diverse perspectives.

This report provides an overview of the population that constitutes the legal categories under US law. The overview is portrayed on the leadership matrix; and, as can readily be seen this category of your talent—like any—has some individuals that truly can lead change and others that seem to be less able to do so.

How to use this report: Understanding issues with this report:

It is important to be realistic about the population you have and plan accordingly. For many reasons there is a reluctance to discuss this population in the same light that we do others. This is truly unfair and does not advance a well-intentioned effort. It is important that those judged as:

·         Promotable should be on candidate lists...if not, someone should inquire why this is the case;  (As mentioned this can be tracked in Report 1-10 Diversity Pool Tracking)

·         Solid citizens; keep them growing---some will be able to step up and step into larger roles; some are those ‘load bearing walls’ that basically run organizations and if they are not in that position we truly would suffer operationally;

·         Limited or Misplaced: For those misplaced an effort needs to be made to get them to a position where they can ‘win’—being misplaced and not meeting expectations is a deadly situation; sapping the organization and diminishing the spirit of the individual. As a caring organization this is contrary to what is valued and thus needs to be corrected.

Even though tough conversations must be held; there are some individuals who are limited and who are heading for not being able to contribute. Sadly, it is best to face the facts and care enough about the individual to have him/her exit the organization with grace.

 

1-7: Vacant Position

Answers the basic question: What key positions are open and are we making progress filling those positions?

What is this Report: This is a summary report of the key positions in the various levels—Executive Level to Individual Contributor that are deemed important and needing to be monitored; it is not all of the positions, but just those  essential for success in this fiscal year. The positions to be traced are designated by the C-Suite who desires to have progress tracked and reported upon.

Why this Report is important: With the recruiting activity occurring the essential and strategic positions can be ‘lost’; these positions cannot be lost.

The question is asked regarding individual contributor positions, since the majority of the focus with the Dashboard is on senior level and management positions. The answer is that many of the critical positions are technical in nature; case in point would be specific programming skills in IT, or design engineering positions with a new aircraft design.

How to use this report: Understanding issues with this report:

These are the key positions to be tracked: Note: in Report 1-9, Progress on fill is reported.

 

1-8 Need to Move Tracking:

Answers the basic question: Are we taking action on those individuals that are deemed promotable and those that we feel are misplaced?

What is this Report: It is an on-going summary of actions that are being taken, particularly with those that we have classified as being able to step up and step into a larger role and those that are mis-placed—just not in the right position.

In Report 1-5 we identified some individuals who could be moved; and then highlighted specific individuals where plans were made to move them, leaving many in the Promotable List where we did not have specific plans to move or they needed more time in position. Additionally, we had a list of those mis-placed. Misplaced individuals needed to have plans made to move them to a more suitable position.

Why this Report is important: Movement in the talent base is important—for the organization and for the individuals. If a review session is held and nothing occurs; then, much occurs. Individuals will infer that ‘getting ahead’ is not linked to performance, more to chance.

Many managers will be reluctant to support the movement of some of their best people to larger responsibilities; and, that is one of the main reasons that there needs to be a monitoring of the movement of individuals.

How to use this report: Understanding issues with this report:

We feel that it is important for Human Resources and also line management to stay up with this report. If not, too many issues slip and an organization can find itself sub-optimized.

The following illustrates some of the factors that can be monitored.

 

1-9 Position Fill Progress:

Answers the basic question (s): Are we choosing the right people for the positions that come up--- those from the

• Promotable list; and, are being vigilant about not
• Putting less capable individuals in positions where they most likely cannot be successful?

What is this Report: It is a way of tracking whether positions are being filled and providing alerts when a placement has gone on too long and needs attention.

Why this Report is important: It allows an organization to ‘make sense’ and stay up with  the key staffing progress--an approach and technology that meets the business and human needs, enabling deeper understanding, better decision making, improved communication and collaboration, and greater productivity.

How to use this report: Understanding issues with this report:

1-10 Diversity Pool Tracking:

Answers the basic question: Are our diverse candidates being given consideration for key positions—what are our plans, actions and outcomes; and are we moving/stepping up to take actions or remedy the situation, such as when we find someone misplaced in position? .

What is this Report: It provides a running summary of actions that are in play to accelerate our intention with diversity. Additionally. it allows you to monitor progress and intervene if appropriate. Like with other time alerts, if something is not happening, an e-mail can be sent to you that will help monitor the situation.

Why this Report is important: Individuals ‘get lost’ or at times are over their heads when the issue of placement is not handled well; it is necessary that the diversity population be on candidate lists and also that if someone is not in the right position we need to move them to a place where they can be successful. This report provides a framework to stay on top of those critical issues.

How to use this report: Understanding issues with this report:

2-1 Poor Performance:

Answers the basic question: Who are those that are not driving the change required so that we can be a high performing organization?

What is this Report: This report is a summary of those who are limited/misplaced and whose change leadership rating is Reactive and Blocked. These individuals will truly drag down results and scuttle a change effort.

Why this Report is important: It will be impossible to drive the change you require if the organization tolerates poor performance. Beside the individual effects on teamwork, these individuals build mediocre organizations; and, noting makes a stronger statement about what is important and valued than who is kept in a position when he/she is not performing well. This cannot be understated.

How to use this report: Understanding issues with this report:

Step 1: Focusing on those that will not be leaders in any kind of change effort. In looking at the total Leadership Pipeline:

Step 2: Scan the entire report and look for issues that will negate good performance: Examples...which you will see in the report:

·         Someone who has been judged to not be that strong in leadership; however, is given a large bonus;

·         Poor performers kept in positions for an extended period of time; this generally indicates that the organization is very tolerant of poor performance;

The story does not end there…it is not just the individual effects; it is that those individuals create below them what is termed ‘pyramids of mediocrity’. The following is instructive:

2-2 Limited Talent 2+ years:

Answers the basic question: Are we over-tolerant of poor performance and are we unwilling to address the affects it produces?

What is this Report: This report surfaces a particularly troubling issue in organizational performance; namely, tolerating poor performance over time. This very clearly signals to your better performers that what they are doing is rewarded just as the poor performer is; keeping someone in a position erodes management’s credibility and the cultural performance edge.

Why this Report is important:

Consider the effects of Poor Performing Leaders: There exists a ‘wind chill’ factor in many organizations. This is a specific organizational malaise the is:

• Hard to measure but
• Easy to recognize and
• Profound in impact; namely, people's reluctance to give of their best.

In many organizations, people perform to “acceptable standards” but are unmotivated to contribute the discretionary effort that is theirs alone to give or hold in reserve. Companies that tap into this energy have an enduring competitive advantage. Those that don't are suffering from the Wind-chill Factor. Their performance, like the temperature, is lower as a result.

An organization's ability to stimulate its people to give of their best is a defining characteristic of a high performance organization (HIPO). Business leaders understand both the importance and relevance of this cultural dimension. Recent research has shown that

• 81% of business leaders … believe that an organization that lacks a high performance culture is doomed to mediocrity.
• 65% of leaders believe that they need to change their own organization's culture to be more successful. However, only approximately
• 10% of companies currently have a high performance culture.

How to use this report: Understanding issues with this report:

1^st: Get in touch with the effects of poor performance:

The gap between aspiration and achievement is wide. The major determinant of that ‘wind chill’ factor is poor leadership and our propensity to tolerate it.

The following is a summary of the immediate effects upon our employees.

 

2^nd: Do something about the effects of poor performers. A leader loses is he or she does not address this issue. Assuring that you maintain the dignity of the individual, provide them with feedback. If required, develop a performance improvement plan and stick to the plan.

If the individual is in a pivotal position, consult your HR business leader and see how quickly you can remediate the situation. Be realistic and fair to all. Being in a pivotal position for the organization is particularly troublesome. Be prepared to act quickly, but effectively.

2-3 Rating-Reward Consistency:

Answers the basic question: Are we being consistent with our messaging to our leaders; and, is the consistency assisting us to align for implementation?

What is this Report: This report is a comparison of the ratings that we have given individuals in:

• Performance Appraisals…focusing on the present or past years results---did they accomplish what we asked them to do this year…at at the level required?, and
• Change Leadership ratings…in our yearly talent assessments are they providing the leadership required to accomplish our strategic, long term agenda?

There should be consistency between the two ratings; if not, it usually is indicative of:

• Management being unwilling or unable to provide accurate feedback to an individual; particularly troublesome is the poor performer who we are many times reluctant to provide accurate feedback to;
• Lack of calibration across the system. What one manager feels is outstanding, another might find less than acceptable; thus, inconsistency.
• What is most common is to have the performance appraisal ratings inflated—that is the case in over 80% of the modern organization.

How to use this report: Understanding issues with this report:

What is at stake: “The overriding issue is that if you do not have consistency with how performance is rated and how jobs are rewarded; the culture is such that it is OK not to perform that well…’getting outstanding results is just not that important around here’ gets to be the norm.

1^st: Review the summary picture of the various groups---compare and contrast the Performance Ratings and the Comp Ratio.

Note: Comp-ratio: Salaries are set by a number of factors; most people are probably familiar with pay grades and ranges, there's a specific ratio, referred to as the "comp-ratio," that is used to maintain consistency in salaries. The ratio is designed to provide a benchmark for salaries across the industry. Outside consulting firms do surveys on a periodic basis and that anchor point assists in keeping salaries competitive. If a Comp-ratio is over 1.00…it generally means you are paying market value; if below 1.00…you are paying below the market figure for that position.

While there is a desire to keep salary information confidential…people do not what others are making in relationship to themselves; thus, if we have a strong performer being paid below some of his/her colleagues and below market value…this can be a de-motivator.

The same can be said for Performance Appraisal ratings.

 

The report that comes up initially:

2^nd: Drill down further into the details to start to uncover some potentially serious performance issues:

 

 

 

 

Comparing the highest rated change leaders to the lowest…one can start to see how this inconsistency could erode the culture where we aspire to be high performing:

It can readily be seen that there is little discrimination between the highest rated groups in terms of performance appraisal and average Comp Ratio; thus, it starts to become clear as to why you cannot drive performance and alignment.

The basic message in the organization is that: no matter what you do, you get the about the same ratings and rewards…thus, why work hard?

Organizations just cannot afford this.

 

 

2-4 Leadership Risk Analysis:

Answers the basic question: What leaders are we vulnerable to lose; and, what are we going to do to retain them?

What is this Report: It is a summary of those leaders that we have judged that we are high or medium vulnerability to losing them. It takes an important issue and keeps it visible so as to require action.

Note: It is important to revisit the issue once the data is gathered and summarized. In a calibration meeting it is important the collective wisdom of senior management and Human Resources professionals be put together.

Why this Report is important: Basically, an organization cannot afford to lose their best and brightest. Many times it is only after the fact that we discover that there were very clear signals that the person was in danger of leaving.

How to use this report: Understanding issues with this report:

Individuals leave for a number of reasons; the most common is the boss that they are reporting to. Beyond that-

·         They are known in the industry and by executive search firms;

·         They are not happy campers…not openly disgruntled, but many times feeling that they are not being treated fairly;

·         They do not see a way of making a viable career within the company---it is a confusing picture as to how to ‘get ahead’

Beyond the analysis of who is vulnerable, engage others to arrive at an approach to assure that you are able to retain your best.

2-5 Promotable Pool Hit-Miss:

Answers the basic question: Are we promoting those that we identified as being able to make a larger contribution to the company…and on the promotable list? And, what is our batting average—are the right people getting the jobs?

What is this Report: It is a visual summary---a vivid picture of what is happening with our key appointments; it truly is a Hit Vs Miss report. An organization will ‘miss’ if the old and tired pattern of appointments being made randomly are continued.

Why this Report is important: If individuals, judged not to be a strong leader are appointed to key positions it erodes the potential to drive change; senior management’s credibility is severely damaged, many of your better performers will reach the conclusion that to perform above the norm is not that important.

How to use this report: Understanding issues with this report:

Next step is to on a consistent basis eliminate poor choices being promoted in the organization.

The practice of promotion from ‘who is here’ has been most likely the norm in many organizations; to interrupt this requires finesse and deft, but resolve. We suggest an approach that goes somewhat like the following:

1^st occurrence: Have the Human Resources business partner counsel the individual manager; see what other kind of support that he needs in staffing, but take a firm stance that those individuals promoted into key positions must be someone who is going to lead the effort; in other words…let the manager who appointed the person know that the senior officer is aware of the situation; if …a

2^nd occurrence: The C-Level executive asks to see the appointing manager, discusses the situation and lets that manager know very clearly that we do not want to promote someone who is not seen as capable of leading the change that is required; if…a

3^rd occurrence: Some kind if reprimand is appropriate; whether it be a letter to the file, or something more public…let the situation, background, personalities and timing determine what needs to be done. Most importantly, the organization needs to clearly understand that promotions and jobs are for those that merit the position.

For the manager who is following the new approach, and taking a risk with an individual, make a public announcement of ‘our commitment to our staff, and how growth and development are central to our successes.

2-7 Poor Performance Action:

Answers the basic question: What specific actions are we taking with poor performers; what is going on and what needs to be going on; are we making progress with this issue?

What is this Report: It is a real time document that allows progress notes to be made as to what is occurring where we have performance issues.

Why this Report is important: Poor performance is not the most pleasant issue to deal with; most require tough—very tough-conversations and actions. Just by the nature of ‘poor performance’ it requires a change…the individual has to improve, the immediate manager and the HR staff are many times a party to resolution. Developing someone for a new position is pleasant work—rewarding; many times stepping up to and taking action with a poor performer is demanding, very tough to deal with; thus, the many reasons of avoidance.

How to use this report: Understanding issues with this report:

Note: In Report 2.1 we identified the individuals where action was required.

As you recall:

 

 

2.6 The Report accommodates editing to track what is occurring; thus, when you open the report:

 

 

2-8 Underleveraged Positions

Answers the basic question: What positions do we have where there is a limited or blocked individual occupying the seat and it is strongly suspected that they are not/will not maximize the potential impact that the position could make. In other words, you have a 10 position and a 5 talent in the job.

What is this Report: It is a visual depiction of those individuals who are Blocked or Limited and a way of staying up with the various actions that are being taken.

Why this Report is important: Of particular concern are those pivotal positions. It is these positions that are essential for the implementation of the strategic direction and where action must be taken. The other consideration is the long term tolerance for poor performance…as you will note in the demonstration those individuals have been in their present position for a long period of time.

How to use this report: Understanding issues with this report:

1^st: Open the report—look at the big picture of what is going on: Pay particular attention to those in pivotal positions and also functions that are essential for your success. For example, if sales were an essential function the individuals in this case would not be advancing what you are doing commercially.

2^nd: Work with your team to resolve this particularly sticky issue; use the Add/View Notes to communicate across the organization toward resolution.

3-1 Pivotal Position Incumbent Analysis

Answers the basic question: With our pivotal positions, who are the incumbents and are they the leaders we need for the task? And, what needs to be done to assure that we have strong leaders in these key positions?

What is this Report: This report is a vivid picture of the pivotal positions and the change leadership and talent forecast of the individuals occupying those positions.

Note: For purposes of clarification: Pivotal positions are the strategic, ‘make or break’ positions essential to the success of the entity. The designation of pivotal position is established by the top of the organization and is driven by the strategic direction. It is absolutely essential that the senior officers/leaders identify those positions. It cannot be left up to managers a few levels down. Middle managers do not have the broad, strategic perspective as does the CEO who has been involved in strategic deliberations involving all facets of the organization.

If you have over 15% of your positions deemed pivotal---you have too many; confusion will reign.

Case in point: At FedEx in the start-up days, ‘customer interfacing positions’ were deemed ‘pivotal’—there was focus and extraordinary efforts were directed toward getting that function and positions ‘right’. During that time many positions did not get the attention that those customer contact positions did; but that changed after about eighteen (18) months. It was obvious that information would be essential to grow the company; then the Information Technology design positions were deemed pivotal. So, the strategy of the company dictates which positions are truly ‘pivotal’.

In this report we are looking at who is occupying those positions to assure that we are able to meet our strategic agenda.

Be aware: Some individuals will take umbrage to the fact that their position(s) are not deemed ‘pivotal’. Understand their concern and assure them that this is not an effort to diminish what they are doing or how they are valued; it is a necessity to focus attention and resources on a particular strategic issue.

Why this Report is important:

These positions have to be occupied by leaders; since the agenda has changed an organization might have tolerated someone in a position and was unwilling to address the issue. Too much is at stake for ‘business as usual’. You are truly vulnerable if you do not have the talent required in those positions.

Progress with this position is documented in Report 3.9: Pivotal Position Tracking

How to use this report: Understanding issues with this report:

1^st: Make sure that you are aware of those positions that have been deemed ‘pivotal’; understand the rational behind the designation so that you are comfortable explaining this to your staff;

 

2^nd: Understand this particular report and its implications;

3^rd: Be prepared to take action to assure that the organization is able to drive the strategic agenda.

3-2 Functional Depth Chart

Answers the basic question: In these critical functions, do we have the talent we need to drive the strategic agenda?

What is this Report: This report is a summary of the various functions and the individuals in position; it lists the categories that each is in: for example,

• Promote
• Hold in Place, and
• Take Action

Note: Dependent upon the strategy this period, some functions are more important than others. After the business plan is set, the executive team will decide on the relative strategic importance of the function and the ‘health’ of that function.

 

Why this Report is important: It is necessary to focus resources on the most important functions; particularly if they need some additional sourcing.

How to use this report: Understanding issues with this report:

1^st:  Look at the overall dispersion of ratings within the matrix

 

2^nd: Look at the relative talent you have in the function: are there individuals who can take the function to greater heights, or is this a ‘run of the mill’ type of unit. A quick glance tells us that the Finance and Administration unit is OK, but not a unit that will provide strong leadership; reason being, over 50% of the leaders are ‘hold in place’. It behooves you to take a more in-depth look, going behind the names and numbers.

3-3 Retirement Vulnerability

Answers the basic question: Who could  be retiring, and for those absolutely critical for our business…what are we going to do to minimize the loss of what they know and can do?

What is this Report: This report is a summary of those eligible for retirement and our plans to protect the organization by planning to capture what unique skills or ‘know-how’ that is resident with them. Knowledge about our practices, processes, people, and customers…all of this is essential not to lose. It also allows someone to inquire of the individual accountable for intellectual capture to assure that what we are capturing meets the objectives we have set.

 

Why this Report is important: As can be seen we have a large portion of our population who could be eligible for retirement; it is necessary to anticipate this and plan accordingly. An organization can suffer if there is not adequate attention paid to these phenomena.

 

How to use this report: Understanding issues with this report:

Look over the big picture---ask yourself and your team if this is an accurate picture—did we miss anything here?;

1^st: Make sure that you have defined what an adequate plan would look like---once developed, define who should receive and monitor the plan; defiant when the plan should be reviewed/reported on…and then

2^nd: Make sure that data is entered and kept up to date;

3^rd: Make inquiries—ask to see the plan we have for the individual. Let people know that you want details about the progress being made—encourage them to enter data on the report;

4^th: Make someone specifically accountable for this activity; asked to be updated—make this issue work for the organization.

3-4 External Search Hit List

Answers the basic question: What positions do we have open at the present time; are we making progress filling those positions; who is accountable?

What is this Report: A running account of the key positions---not all of the positions that senior management and HR decides to track, but essentially those deemed most critical to our success.

Why this Report is important: Issues get lost in the day to day operations; there needs to be one location where Human Resources can record information; C-Level executives will want to know the status of recruiting efforts, particularly with key positions.

How to use this report: Understanding issues with this report:

1^st: Positions can be added or deleted from the Report; thus, make sure that the key positions requiring tracking are on the report and monitored;

2^nd: Note: Some of the most important positions will be Individual Contributors and Key Managers, particularly in high tech industries.

3-6 Underleveraged Top Talent

Answers the basic question: Do we have talented individuals who could be under-utilized?

What is this Report: A summary of those that are Promotable and who report to individuals that are not considered strong leaders. It could indicate that you have an issue that needs addressed. It is an early-warning system as much as anything.

Why this Report is important: It does not immediately follow; however, those that are Promotable are best placed with other strong leaders. The report surfaces information that should be looked at and assessed. This information has immediate performance implications and also retention issues. It is a truism that “strong leaders do not leave organizations they leave bosses”.

How to use this report: Understanding issues with this report:

 

1^st: Look over the report—push further into the issue; talk to the HR staff as to your concern;

2^nd: Ask that the HR business partner stay on top of the issue; ask for periodic updates about anyone that you are concernced about;

3^rd: If you receive word that a Promotable individual is leaving the organization, see the individual, pull out all stops to keep this from happening.

3-8 Key Population Tracking

Answers the basic question: With our new recruits that we are accessing/bringing in what is the status of our efforts—is it producing results for us a corporation?

What is this Report: An up to date summary of the pattern of recruiting key positions into the organization. For example, in this case we have IT staff from the University of Georgian and Design Engineers from Purdue University.

Why this Report is important: Resources are committed, relationships are built over time to encourage the best graduates to come to this organization; in many way, they are the new and innovative thinkers; Universities and ‘think tanks’ are great sources and need to be courted. But, the yield needs to be looked at—and the question asked…is this source producing the talent we need?

How to use this report: Understanding issues with this report:

 

1^st: As an executive, scan this report periodically and assess whether this relationship is working for your organization;

2^nd: If it is…ask those close to the situation—how can I/we help you here?;

3^rd: Take occasion to build the relationship---there is nothing wrong with inviting the head of the University to one of your events; give them some recognition for the bond that is being built. In other words, help those close to the situation---whether it be the HR recruiting staff or a line officer to advance the relationship. Nothing works better than small professional courtesy.

3-9 Pivotal Position Tracking

Answers the basic question: Are we taking the right actions to assure that we have talented individuals in those key seats?

What is this Report: This report shows the ‘big picture’ of leadership in the pivotal positions; basically tracks the action with the pivotal positions; what action is being taken to assure that talented individuals occupy those seats.

Why this Report is important: So that there is a complete picture of actions being taken to assure strategic success.

How to use this report: Understanding issues with this report:

1^st: Use the report and track actions---if a team is engaged, encourage them to consolidate their notes on this page;

2^nd: Take affirmative action to move individuals out of these key positions if they are not up to the task. Again, too much is at stake here.

3^rd: Do not neglect those that are solid performers in those positions; many times seemingly small issues get in the way of superior performance; ask what is important for them to be able to do their job, what kind of help do they need; what resources would make the task easier to accomplish?

This provides you with good information and communicates to them that what they are doing is appreciated. Obtain the resources that they need to perform well.

3-10 Don’t lose list

Answers the basic question: Who are the early leaders that have been identified through various means that we need to start to track?

What is this Report: A summary of those identified as future ‘comers’ in the organization—this list is a consolidation of sources in the organization:

• Those identified in succession planning as a ‘pipeline candidates’ and a
• Parking place for those individuals who impress senior officers of the corporation and where we can keep up with them.

Why this Report is important: The ‘up and comers’ can get lost…there has to be some place to consolidate the listing; later, we can go out and truly verify if they are that strong. But, initially it is a way of consolidating various views.

How to use this report: Understanding issues with this report:

Initially when you open the report:

 

 

 

 

The Pipeline Candidates come from Succession Planning: They are one of the three types of candidates that we have identified. Those categories are:

Future Successors: 1-2 Employees who would seem to be the most logical successors. Emergency Step-In Candidate: Someone who could handle the position on a temporary basis –until the present incumbent returns or until the position is filled?; or Pipeline Candidate: Someone who is not presently qualified, but who could develop the required competencies and experience to be a viable candidate in 3+ years;

The individuals identified as Pipeline Candidates are pulled into the Can’t Lose List; the second part of the list.

This list traditionally comes from a senior officer who has seen someone that looks promising; it is basically a parking place so that we can later go back and do a further assessment of the individual.

On the list where we have Add/View…just click to add comments.